ASX200 Real Estate Deal: CoStar Eyes Full Takeover of Domain for $2.8 Billion

May 09, 2025 10:49 AM AEST | By Team Kalkine Media

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ASX200 Real Estate Deal: CoStar Eyes Full Takeover of Domain for $2.8 Billion — Image source: shutterstock

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Highlights

CoStar targets full acquisition of Domain in a $2.8 billion deal

Nine Entertainment to receive $1.4 billion post-tax proceeds

Deal underscores rising interest in ASX-listed digital real estate assets

In a major development within the Australian real estate and digital property space, CoStar Group (NASDAQ:CSGP), a leading U.S.-based real estate data and analytics company, has agreed to acquire Domain Holdings Australia (ASX:DHG) for an estimated A$2.8 billion. This deal represents one of the largest proposed acquisitions in the Australian tech and media landscape and is expected to close in the third quarter of 2025.

Domain, a major digital property listing platform in Australia, has long been backed by Nine Entertainment (ASX:NEC), which holds a 60% stake in the company. CoStar already secured a 16.9% interest in Domain earlier this year. Under the terms of the agreement, CoStar is offering A$4.43 per share for the remaining shares—an offer Nine Entertainment has signaled its intent to support.

Nine stated in an investor announcement that the proposal “appropriately reflects the strategic value of Nine’s interest in Domain.” If approved and completed, Nine stands to gain approximately A$1.4 billion in post-tax proceeds, a significant liquidity event for the media conglomerate, which also owns The Australian Financial Review.

This acquisition move comes at a time when Australian equities, particularly those in the tech and real estate sectors, are gaining renewed attention as part of broader investment strategies. Domain is a notable player within the S&P/ASX200, and its acquisition may influence investor sentiment around digital infrastructure assets and online property platforms within this benchmark index.

The transaction also casts a spotlight on the appeal of ASX dividend stocks, with stakeholders increasingly assessing long-term income potential across sectors. While Domain itself may not be a typical dividend-focused entity, its integration into a global platform like CoStar could reshape its strategic direction and financial profile.

For CoStar, the acquisition marks a bold step in international expansion, leveraging Domain’s established presence and brand recognition in the Australian market. For Nine, the deal may unlock value and capital that could be redirected toward its core media operations or new growth initiatives.

With regulatory approvals and shareholder agreements still pending, market participants will be watching closely as the transaction progresses toward its anticipated completion in late 2025.

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