Rightmove made the wrong move, says Murdoch’s News Corp
Rupert Murdoch’s News Corp has applauded REA’s decision to abandon a takeover of Rightmove after the property platform rejected its fourth offer.
In a statement today, Robert Thomson, chief executive of News Corp, said he “strongly supported” the property group’s “financial discipline” in pulling out of the bid, and added that it was an example of the business acumen which had allowed News Corp to expand to its current size.
“It is foolhardy to overpay for an asset, even if it patently had positive potential,” he said. “We have no doubt that REA will continue to successfully expand into auspicious adjacencies.
“We wish [Rightmove] well in an increasingly competitive British market – unfortunately, the company’s board did not make the right move,” he said.
“The board has unanimously concluded that the latest proposal is unattractive and materially undervalues Rightmove,” the company said. “Shareholder interests would be better served through the execution of Rightmove’s standalone strategic plan.”
In a statement, Rightmove’s chair Andrew Fisher said: “We respect REA and the success they have achieved in their domestic market. However, we remain confident in the standalone future of Rightmove,” the company’s chair Andrew Fisher said.
Rightmove also declined REA an extension to its 30 September ‘put up or shut up’ deadline, as well as access to due diligence as “none of REA’s proposals received to date has been at a sufficient level to grant such access”.
In a parting shot, REA said that company hadn’t meaningfully engaged with the offer, nor had they allowed a constructive dialogue.
REA’s chief executive Owen Wilson added that he was “disappointed” with Rightmove’s limited engagement. “They had nothing to lose by engaging with us,” he added
Rightmove has rebuffed claims from Wilson that it has “refused to meet with” REA.
It said that the company has “taken every phone call that REA has made since its interest was first made public, with a level of engagement which in Rightmove’s view is customary and appropriate in the context of an unsolicited and unilateral series of approaches”.