REA Group, predominantly owned by News Corp, is considering a bid to acquire Rightmove, the UK’s top property portal. This potential acquisition, estimated to exceed £5bn in value, marks Lachlan Murdoch’s latest strategic endeavour to expand the family’s empire, following his recent empowerment with full control by his father, Rupert Murdoch. The deadline for formalising an offer looms at the end of this month, with Rightmove dominating over 80% of the UK property market share.
Lachlan Murdoch, who has played a pivotal role in the family’s venture into the digital real estate space since the early 2000s, is eyeing Rightmove as a means to replicate the success News Corp has seen with similar platforms in Australia and the US. This strategy not only aims to secure a new revenue stream but also to offer a financial lifeline to the Murdochs’ UK media operations, which have faced mounting pressures and financial losses in recent years.
The acquisition of Rightmove would complement News Corp’s portfolio by mirroring its profitable Australian counterpart, REA Group, and its American entity, Move, Inc. Such a move is viewed by industry insiders as an attempt to shore up the conglomerate’s UK news entities, including The Sun and TalkTV, which have grappled with significant financial challenges and declining audiences. Notably, The Sun reported a £66m loss last year, amidst ongoing repercussions from the phone-hacking scandal.
Despite the challenges in the print sector, News UK reported a profit for The Times and The Sunday Times, highlighting a silver lining amidst the otherwise turbulent media landscape. However, the broader News Corp news media division witnessed a 23% profit drop in the year leading up to June. This context makes the potential Rightmove acquisition a strategic play to invigorate News Corp’s UK operations with a lucrative property listing platform, thus offering a buffer against the declining fortunes of its traditional media holdings.
The timing of the Murdoch’s interest in Rightmove is seen as opportunistic, capitalising on the current undervaluation of the property site amidst expectations of a buoyant UK property market in the near future. This move comes during a period of significant restructuring within the Murdoch empire, following Rupert Murdoch’s entertainment business sale to Disney in 2017 and the loss of Sky to Comcast in 2018.
The proposed acquisition aligns with the Murdochs’ enduring strategy of diversifying their investment portfolio to include online classifieds, a sector where they have historically seen success. This approach not only signals a commitment to adapting to digital market dynamics but also underscores the family’s intention to solidify their commercial footprint in the UK, thereby securing a robust financial foundation for their news media interests in the region.
As discussions around the potential deal unfold, the broader implications for the Murdoch family’s media and digital real estate ambitions remain a focal point of interest, particularly in light of the ongoing realignment of the family’s generational leadership and investment strategy.
News Team
