Rupert Murdoch, chairman emeritus of media empire News Corp.
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LONDON – Rupert Murdoch owns it REA group said there is a takeover bid for the UK property portal Move right in a bid to create a global digital real estate business.
The Australian property listing company, which is controlled by Murdoch’s News Corp, said in a statement to the Australian stock market that it was considering a cash and stock offer for Rightmove, but had not yet entered into talks with the company.
Rightmove shares rose 25% in early trading following the announcement. The stock was 23% higher at 10:56 and was trading above the FTSE 100. Shares in REA Group fell as much as 6%.
Rightmove has not issued a statement or did not immediately respond to CNBC’s request for comment.
REA Group’s announcement comes after reports that it is working with Deutsche Bank on a major overseas acquisition, according to the Financial Times.
The Melbourne-headquartered company has not said it is considering a bid for Rightmove, but the British platform was valued at £4.34 billion ($5.7 billion) at market close on Friday.
In its statement, REA Group said the potential acquisition was a “transformational opportunity” and cited “obvious similarities” between the two companies, including strong brand awareness, market share and “strongly aligned cultural values.”
Under UK takeover law, REA now has until the end of September to make a formal offer or leave following an expression of public interest.
