Rightmove, the UK’s leading real estate portal, has firmly rejected a £6.2 billion takeover bid from REA Group, the Australian property giant backed by Rupert Murdoch’s News Corp.
This latest bid marks REA’s fourth attempt to acquire the company, with Rightmove maintaining that the offer significantly undervalues its long-term prospects.
The Rightmove board announced on Monday that, after a thorough review with its financial and legal advisors, it had unanimously decided to reject REA’s latest offer.
The board emphasized that the proposal remains “unattractive” and does not reflect Rightmove’s true value.
The timing of the rejection came just hours before the expiration of the “put up or shut up” deadline, which required REA to either make a firm offer or walk away by 5 pm UK time on Monday.
“If REA wishes to make another offer, it should be a best and final proposal before the deadline,” Rightmove stated, adding that it would not extend the deadline for further negotiations.
The rejected bid valued Rightmove shares at 780p, putting the company’s total valuation at approximately £6.2 billion.
Despite REA’s persistence—having made three prior offers that were similarly dismissed—Rightmove’s leadership remains steadfast in its position.
REA criticism rebuffed by Rightmove
In response to REA’s claim that Rightmove has not engaged with its offers, the UK portal countered these accusations in its Monday statement.
Rightmove confirmed that its chairman, Andrew Fisher, had personally met with REA chairman Hamish McLennan to discuss the fourth proposal.
The statement read:
Rightmove has engaged at every stage with REA, taking each of its calls and addressing the offer in a manner that is customary for a UK-listed company facing unsolicited bids.
Rightmove also rebuffed REA’s request for an extension to the “put up or shut up” deadline, stating that it was important to bring certainty to the process after weeks of disruption.
Refusal to provide further due diligence
Rightmove has further declined REA’s request for access to detailed due diligence information.
The board argued that there is already sufficient public information available about Rightmove’s business, strategy, and financial performance.
The board suggested that REA should be able to formulate an acceptable bid based on this existing information, without needing additional access.
Rightmove advised shareholders:
The board considers that the information already in the public domain, combined with REA’s existing knowledge of Rightmove, should be enough for REA to make a credible and final proposal.
Murdoch’s Longstanding Investment in REA Group
Lachlan Murdoch, son of Rupert Murdoch, played a crucial role in REA’s growth, acquiring a 44% stake in the then-struggling Australian property company in 2001 for A$2 million (£1.3 million).
Since then, REA has become a significant asset within the Murdoch family’s portfolio, especially as the family shifts its focus away from media after Rupert Murdoch’s retirement from leadership last year.
The REA investment is widely seen as one of Lachlan’s most successful ventures, furthering the family’s wealth and diversifying its holdings beyond media.
Rightmove shares dip amid takeover battle
Shares in Rightmove dropped by 3% following the announcement of the rejected bid, trading at 648p.
Investors will now await the next move from REA as the “put up or shut up” deadline looms.
Whether REA will submit a new final proposal or step back remains uncertain, but Rightmove has made it clear that any future offer must fully reflect the company’s potential.
The outcome of this takeover bid could significantly impact both companies, with Rightmove standing firm in its valuation and REA pushing for a foothold in the lucrative UK property market.
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