News Corporation, a global diversified media and information services company, has announced that its subsidiary, REA Group Ltd, has made a non-binding proposal regarding a potential offer for the share capital of Rightmove (OTC:RTMVY) plc.
This announcement was made public today, September 11, 2024, through a regulatory filing with the Securities and Exchange Commission (SEC).
REA Group Ltd, which operates a leading Australian real estate website, is considering the acquisition of Rightmove plc, a UK-based company that runs one of the country's prominent real estate portals.
The proposal is in its early stages and is non-binding, meaning that discussions are ongoing and there is no certainty that an offer will be made or that any transaction will ensue.
The potential acquisition could have significant implications for the digital real estate market, potentially consolidating two major players in the industry. However, the details of the proposal, including the financial terms and the strategic rationale behind the move, have not been disclosed in the filing.
In other recent news, News Corp (NASDAQ:NWSA) reported a 6% increase in revenue to approximately $2.6 billion in the fourth quarter of fiscal year 2024, with profitability rising by 11% to $380 million. These figures were largely driven by diverse sectors including book publishing, digital real estate services, and Dow Jones segments. Loop Capital has increased News Corp's stock price target to $39.00, maintaining a Buy rating and highlighting potential growth from its digital real estate ventures. Morgan Stanley (NYSE:MS) also upgraded its stock price target for the company to $35.00, albeit with slightly reduced earnings per share estimates.
News Corp continues to execute its $1 billion stock repurchase program, a move seen as part of a broader strategy to enhance shareholder value. In addition, the company's subsidiary, REA Group Ltd, is contemplating the acquisition of Rightmove plc, the UK's largest property website. Despite a decrease in revenues and EBITDA in the News Media segment, News Corp is planning for fiscal 2025, focusing on streaming, B2B growth, and data offerings.
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