Rightmove has turned down a £5.6 billion takeover bid from Rupert Murdoch’s REA Group, labelling the offer as “opportunistic” and asserting that it undervalues the UK’s leading online estate agent.
REA Group, the Australian real estate conglomerate controlled by Murdoch’s News Corp, submitted an indicative cash and share proposal valuing Rightmove at 705p per share—a 27% premium on the company’s current market valuation. Despite this, Rightmove’s board unanimously rejected the offer, with a statement to investors declaring: “The board carefully considered the proposal, together with its financial advisers, and concluded that it was wholly opportunistic and fundamentally undervalued Rightmove and its future prospects.”
According to City takeover regulations, REA now has until 5pm on September 30 to either formalise its offer or withdraw.
REA Group, which boasts a market value of A$26 billion (£13 billion) and owns property brands such as realestate.com, first expressed interest in acquiring Rightmove last week. This announcement led to a 25% surge in Rightmove’s share price, bringing its market valuation to £5.3 billion by Tuesday’s close.
The proposed deal would see Rightmove shareholders owning approximately 18.6% of the combined entity’s share capital, while retaining rights to an interim dividend of 3.7 pence per share. REA argued that their proposal offers a “certainty of value” with a cash component and a significant premium, alongside potential benefits from future growth of the merged business. The cash portion of the deal would be financed through a combination of third-party debt and existing funds.
REA also plans to secure a secondary listing on the London Stock Exchange, aiming to attract a broader investor base interested in a global, diversified digital property platform.
Rightmove’s rejection comes amid a challenging period for the UK property market, with high mortgage rates dampening buyer enthusiasm. However, market activity is expected to improve as interest rates eventually decline.
This move is part of a broader strategy by the Murdoch family to diversify beyond traditional media ventures, as Rupert Murdoch transitions leadership to his eldest son, Lachlan. At 93, Rupert Murdoch is reportedly seeking to amend the terms of the family trust to give Lachlan sole control, a decision that has sparked dissent among his other children and set the stage for a legal battle in Nevada.
