The leading digital advertising company has responded to recent rumors about its potential purchase of the UK property listing site Rightmove.
In a statement released to the ASX on September 2, 2024, REA Group acknowledged that it is considering a possible offer involving both cash and shares for all existing and future shares of Rightmove.
The ASX announcement reveals that REA’s board sees “clear similarities” between their company and Rightmove. They highlight both firms’ dominance in the residential market, continuous growth and innovation in related areas, significant audience reach, strong brand presence, and shared cultural values.
The board views this as a chance to use their expertise to build a global, diversified digital property business, potentially leading in both Australia and the UK. They believe that merging would create a compelling investment opportunity and increase shareholder value.
As of the latest update, REA Group has not yet approached or engaged in discussions with Rightmove regarding a potential offer.
Following the ASX announcement, REA has until 5:00 pm (London time) on September 30, 2024, to either announce a definite intention to make an offer for Rightmove or state that it will not pursue a bid for the company listed on the London Stock Exchange.
In light of the media speculation, REA Group’s share price declined by over 7 percent, ending slightly above $200 per share.
This follows realestate.com.au reaching a record audience in July, which aligned with the 2024 Olympics and the debut of the Keep Moving brand campaign.
For FY24, REA Group reported a 23 percent rise in revenue, amounting to $1.453 billion. EBITDA, excluding associates, climbed to $825 million, while net profit increased by 24 percent to $461 million.
