News Corp CEO Supports REAs Decision to Withdraw from Rightmove Bid

Highlights:

• REA Group Ltd (ASX: REA) withdraws $12 billion bid for UK real estate platform Rightmove, with backing from News Corp's CEO Robert Thomson.
• Investors responded positively, sending REA’s shares up 5% to $210.94 at the time of writing.
• REA emphasized the strategic rationale behind its bids, aiming to create a global, diversified digital property company.

REA Group Ends Pursuit of Rightmove

At the time of writing, REA Group Ltd (ASX: REA) shares surged by 5.22%, reaching $211.50, reflecting strong investor approval of the company’s decision to withdraw from the Rightmove bid. REA Group Ltd (ASX: REA) officially stepped back from its $12 billion bid for British real estate platform Rightmove, with full backing from its majority owner, News Corp. News Corp's CEO, Robert Thomson, praised REA's move, stating it would have been unwise to pay more for Rightmove after several failed acquisition attempts.

Investor Confidence Boosted

REA, Australia's largest property platform, has been eyeing Rightmove, the UK’s leading real estate platform, over the past month. However, despite multiple offers, Rightmove consistently rejected the bids. On Tuesday, REA informed investors that it had decided not to submit another offer, emphasizing that its bids were based on a "clear strategic rationale" and aimed at building a global, diversified digital property company.

Investors reacted positively to the news, pushing REA Group's shares up by 5% to $210.94. This price surge reflects investor confidence in REA's strategic discipline and its ability to pursue other opportunities without overextending.

News Corp's Support

News Corp, which holds a 61% stake in REA, fully backed the decision. CEO Robert Thomson highlighted that walking away from the deal was the right move, preventing an overvaluation that could harm long-term growth.

REA Group's decision to step back, paired with its focus on global expansion, demonstrates the company's prudent approach in navigating complex international deals while safeguarding shareholder value.

With a robust position in Australia and ongoing global aspirations, REA remains a significant player in the digital real estate market.

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