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The digital advertising giant has responded to “press speculation” around its potential purchase of the UK property listing platform Rightmove.
In a statement to the ASX on 2 September 2024, REA Group confirmed its consideration of a possible cash and share offer for the entire issued and to be issued share capital of Rightmove.
According to the ASX announcement, REA’s board sees “clear similarities” between REA and Rightmove “in terms of their leading market positions in the core residential business, continued expansion and innovation of offerings across adjacent segments, leading audience share and strong brand awareness, as well as highly aligned cultural values”.
Citing a transformational opportunity to apply its capabilities and expertise to build out a global and diversified digital property company, and hold the number one position across Australia and the UK, the board reportedly believes “the enlarged group would represent a highly attractive investment opportunity” and unlock shareholder value.
At the time of writing, REA Group said it had not approached, nor had any discussions with Rightmove, with respect to any potential offer.
Now, having made the ASX announcement, REA has until 5:00pm (London time) on 30 September 2024 to either announce a firm intention to make an offer for Rightmove, or state that it does not intend to make an offer for the London Stock Exchange-listed company.
Following media reports and speculation, REA Group’s share price did dip by more than -7 per cent to just over $200 per share.
It comes after realestate.com.au set an all-time audience record during the month of July, coinciding with the 2024 Olympics and the rollout of the Keep Moving brand campaign.
The group also reported a 23 per cent revenue bump in FY24, bringing in $1.453 billion across the financial year.
They also reported an increase in EBITDA excluding associates at $825 million and a 24 per cent increase in net profit to $461 million.
REA Group CEO Owen Wilson called the year’s performance “exceptional”.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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