Login
iscover
Negotiations between CoStar and Domain are gaining momentum, with the potential deal valued at $1.76 billion.
According to the Australian Financial Review (AFR), representatives from Nine Entertainment and US real estate giant CoStar are negotiating the price at which Nine would sell its stake in the property business Domain.
The AFR suggested that bankers for both companies are in discussions, with Nine being comfortable selling 60 per cent of its Domain stake at $4.65 a share.
If CoStar accepts the offer, it will value Nine’s shareholding in Domain at $1.76 billion.
The suggested $4.65 per share offer represents a 49 per cent premium over Domain’s trading price, compared to CoStar’s initial proposal, which was a 34.6 per cent premium.
However, through an ASX announcement, Nine Entertainment and Domain revealed that the property company had not received a revised proposal from CoStar since 21 February 2025.
“Nine confirms that, as the controlling shareholder of Domain, it is in discussions with CoStar relating to the proposal. Nine is also engaged with Domain on the proposal,” it said in an ASX statement.
On 21 February, CoStar launched a bid to acquire 100 per cent of Domain’s issued capital at $4.20 per share, following its acquisition of 16.9 per cent of Domain’s holding ordinary shares the day before.
CoStar is an information, analytics, and news platform for commercial real estate.
Its inventory includes over 7 million commercial properties, including off-market investment opportunities, appraisal tools, and insight into asset financial performance.
Market conditions have changed since CoStar’s initial offer, with the S&P/ASX 200 falling 5 per cent amid the ongoing worldwide political trade climate.
However, CoStar’s bid comes at a time when the Australian dollar is valued at US63¢, which is roughly 10 per cent below its 10-year trading average.
Nine Entertainment said the discussions are ongoing and confidential, including the potential price at which CoStar could submit a revised proposal.
“There is no certainty that the discussions will lead to a revised proposal from CoStar,” the ASX statement said.
“Nine continues to assess the proposal, including the strategic value of Domain to Nine, with a focus on the best interests of Nine shareholders.”
You are not authorised to post comments.
Comments will undergo moderation before they get published.