Rightmove Shares Surge on Potential Takeover

Shares of Rightmove (OTC:RTMVY), the UK’s online real estate platform, surged on Monday following news that REA Group, an Australian digital property giant majority-owned by Rupert Murdoch’s News Corp (NASDAQ:NWSA), is considering a cash and share offer for the entire issued and to be issued share capital of Rightmove.

At 3:45 am (0745 GMT), Rightmove was trading 19.8% higher at £665.40.

In an exchange filing dated Monday, REA confirmed it is exploring a potential takeover of Rightmove. While no formal offer has been made, REA is actively considering a deal involving a mix of cash and stock.

“The REA Board believes that there are clear similarities between REA and Rightmove in terms of their leading market positions in the core residential business,” stated the company in an exchange filing.

A merger could position these businesses as major players in the digital real estate industry, as both lead their respective residential property markets.

The combined entity would offer a wider range of services, dominate both the Australian and UK markets, and enhance value for its customers and consumers.

This proposed merger presents a promising opportunity for investors. Rightmove shareholders could witness a significant rise in share value and growth potential within a larger organization. Conversely, REA shareholders would gain access to the lucrative UK property market and benefit from shared resources and expanded operations.

Despite the announcement, there is no guarantee that a formal offer will materialize. According to regulations, REA must make a firm announcement by September 30th, stating either an intention to make an offer or to withdraw. This deadline may be extended with the Takeover Panel’s approval.