CoStar Extends Domain Deal Timeline, Reaffirms Commitment to Acquisition

April 28, 2025 10:38 AM AEST | By Team Kalkine Media

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CoStar Extends Domain Deal Timeline, Reaffirms Commitment to Acquisition — Image source: shutterstock

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Highlights

CoStar seeks two additional weeks to complete Domain due diligence.

Domain confirms CoStar’s ongoing interest at initial offer price.

Nine Entertainment remains the majority stakeholder in Domain.

US real estate powerhouse CoStar Group (NASDAQ:CSGP) has requested an extension to finalise its due diligence for the proposed acquisition of Australian property platform Domain Holdings Australia (ASX:DHG). In a statement to the Australian Securities Exchange (ASX) on Monday, Domain confirmed that CoStar has provided the "necessary reconfirmation" of its intention to proceed with the deal under the terms announced in late March.

The initial four-week period set aside for due diligence was scheduled to conclude on Monday. However, with the newly requested extension, CoStar is expected to wrap up its assessment over the next two weeks, allowing more time to carefully review Domain’s operations and financials.

The bid, first pitched on March 27, values Domain at $4.43 per share, reflecting CoStar’s strategic move to expand its global real estate footprint. CoStar had already secured a foothold earlier this year by acquiring a 16.9 per cent stake in Domain. This offer now aims to purchase the remaining shares and take full ownership of the company.

Domain operates as one of Australia’s largest online property platforms, offering listings, market insights, and real estate services. Its parent company, Nine Entertainment Co. Holdings (ASX:NEC), maintains a controlling interest, holding approximately 60 per cent of Domain's shares. Nine Entertainment also owns major media assets, including The Australian Financial Review.

The potential acquisition aligns with CoStar’s broader strategy to strengthen its international presence and tap into growing online real estate markets outside of the United States. It also reflects the increasing global interest in Australia’s digital property sector, which has seen strong demand and innovation in recent years.

As the next two weeks unfold, all eyes will be on how the extended due diligence period progresses. Market participants are keenly observing whether the deal terms will remain unchanged and how it might reshape the competitive landscape of property platforms in Australia.

This development represents a significant moment for Domain and its shareholders as it navigates a potential new chapter under the wing of a global real estate giant.

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