Rupert Murdoch's News Corp announced it is acquiring real estate website Move for $950 million to facilitate the home rentals and sales in the U.S.
REA Group Limited, which is over 60% owned by News Corp, plans to hold a 20% stake in Move. News Corp itself will hold 80%. REA operates RealEstate.com.au in Australia.
Move operates realtor.com, which displays over 98% of all for-sale properties in the U.S. These are sourced from over 800 multiple listing services.
“This acquisition will accelerate News Corp’s digital and global expansion and contribute to the transformation of our company, making online real estate a powerful pillar of our portfolio,” said News Corp CEO Robert Thomson. “We intend to use our media platforms and compelling content to turbo-charge traffic growth and create the most successful real estate website in the US. We are building on our existing real estate expertise and expect to leverage the potential of Move and its valuable connections with Realtors and consumers around the country.”
“In addition to boosting Move’s subscription, advertising and software services, this acquisition will give News Corp a significant marketing platform for our media assets, which will benefit from the high-quality geographic data generated by real estate searches,” he said. “We certainly expect this deal to amount to far more than the sum of the parts.”
Move CEO Steve Berkowitz added, “News Corp’s acquisition of Move speaks powerfully to the quality and value of our content, audience and industry relationships. We provide people with the information, tools and professional expertise they need to make the best and most informed real estate decisions, and we work to uphold the indispensable role of the professional in the real estate experience. News Corp shares our vision, which is one of the many reasons this combination is such good news for our customers, consumers and the industry as a whole.”
The deal has been approved by the boards of both companies. It's a deal of $21 per share and an all-cash tender offer. REA's share will be $200 million.
Move also owns ListHub.
The deal is expected to close by the end of the year. Move will remain located at its San Jose headquarters.
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