Rightmove Faces Third Bid from REA Group Amid Disappointment

September 23, 2024 04:06 AM PDT | By Team Kalkine Media

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Rightmove Faces Third Bid from REA Group Amid Disappointment — Image source: Shutterstock

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Rightmove PLC (LSE:RMV), the leading UK property portal, has received a second revised offer from REA Group, which is owned by media mogul Rupert Murdoch. This latest proposal values Rightmove at approximately £6.1 billion and marks the third attempt by REA to acquire the company.

The initial bid was made on September 5, offering 705p per share, followed by a revised offer of 749p per share on September 16. Rightmove has previously dismissed these offers as "wholly opportunistic," but the company has announced that it will "carefully consider" this new proposal and is currently in discussions with its financial advisers.

The latest offer represents a 9.2% increase over the initial bid and a substantial 39% premium to Rightmove’s undisturbed share price of 55p as of August 30. Should the acquisition proceed, shareholders of Rightmove would collectively hold approximately 20% of the combined entity.

In a statement regarding the revised offer, REA’s chief executive Owen Wilson expressed disappointment at the lack of engagement from Rightmove's board. He emphasized the potential benefits of combining their respective expertise and technology, stating that such a merger would enhance the experience for agents, buyers, and sellers in the property market.

Wilson highlighted the increasing competition in the digital property landscape and stressed that the proposed transaction would create a stronger, more competitive entity poised for investment and growth.

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