News Corp's REA gives up on pursuit of Rightmove after four rejections

By Steve Goldstein

Last bid had valued Rightmove at more than $8 billion

After four rejections, Australia's REA on Monday finally gave up its pursuit of Britain's Rightmove.

REA (AU:REA), which is mostly held by the U.S. media group News Corp, said its fourth cash-and-stock bid at a 45% premium would've given shareholders "the opportunity to create a global and diversified digital property company, with strong margins and significant cash generation, underpinned by number one positions in Australia and the UK."

The last offer valued Rightmove (UK:RMV) was 775 pence per share, or GBP6.1 billion ($8.2 billion).

Rightmove shares fell 8% to 616.80 pence, a sign the market had some - but not much - expectation that the REA bid would succeed.

Rightmove, an FTSE 100 component, said the bids were unattractive and materially undervalued the company.

News Corp (NWS) also owns MarketWatch, the publisher of this report.

-Steve Goldstein

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09-30-24 0937ET

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