Rightmove pounces on Murdoch-backed takeover bid

Rightmove was the top gainer on the FTSE 100 this morning, with shares rising to a high of £6.96, taking its market capitalization to £5.4bn.

The company is currently the market leader in online property rentals and sales, ahead of rivals Zoopla and OnTheMarket.

Online property listing businesses have been the subject of speculation lately. In December 2023, US real estate group CoStar acquired OnTheMarket in the hope of knocking Rightmove off the top spot. The move has led to fears that Rightmove could lose its competitive edge and potentially become the target of a separate takeover.

Rightmove has been a UK PLC success story since its inception in 2000. This year it reported strong financial results for the full year 2023, with an operating profit margin of 71%. The firm also said revenue rose by £31.7m in 2023 to £396m, a 10% increase on 2022 levels.

REA Group, which is 61% owned by Murdoch’s News Corp, said there were “clear similarities” with the firm and Rightmove’s “market leading positions in the core residential business”. It added that the transaction would be a very attractive opportunity for both REA and Rightmove shareholders.

REA has several brands in Australia, USA and India. The company previously tried to expand into the UK, but eventually sold its UK operation to Zoopla in 2009.