News Corp's REA Group has confirmed that it is considering an acquisition of property platform Rightmove, citing the "transformational opportunity" to expand its business in the United Kingdom.

In a note posted to the ASX, the media business outlined has not yet approached or had any discussions with Rightmove regarding any potential offer, and made the announcement in accordance with the UK's City Code on Takeovers and Mergers.

The parent company of realestate.com.au and Flatemates, REA said it was considering a cash and share offer for the entire issued and to-be-issued share capital of the London Stock Exchange-listed platform, with the REA Board acknowledging similarities between REA and Rightmove in terms of their leading market positions in the core residential business, expansion and innovation of offerings across adjacent segments, leading audience share, strong brand awareness, and highly aligned cultural values.

REA said it sees a transformational opportunity to apply its globally leading capabilities and expertise to enhance customer and consumer value across the combined portfolio and to create a global and diversified digital property company, with number 1 positions in Australia and the UK. The REA Board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders, combining robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns.

REA has a long history of growth and has demonstrated a track record of building businesses over decades to create globally leading platforms that have transformed the way people experience property. With an acquisition of Rightmove, REA would look to enhance the UK property experience for buyers, sellers and renters, supporting Rightmove’s vision “to give everyone the belief they can make their move” while positively contributing to the property market ecosystem with investment and innovation.

AT this stage, there can be no certainty that an offer will be made, nor as to the terms on which any offer may be made. REA must, by no later than 5.00 p.m. (London time) on 30 September 2024, either announce a firm intention to make an offer for Rightmove in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for Rightmove.