Market Speculation on Rightmove Takeover by REA Group Unlikely, Analyst Says

Market speculation continues to swirl about a potential takeover bid for Rightmove by the Rupert Murdoch-backed REA Group. However, an analyst has claimed that such an offer is unlikely to materialize.

Broker Jefferies has issued a note suggesting that the market’s anticipation of a takeover is a mistake. Jefferies now believes that Rightmove’s share price is poised to underperform.

This speculation has been fueled by reports that CoStar, the owner of OnTheMarket, is interested in acquiring Australia’s second-largest property marketplace, Domain, which is second only to REA in the Australian market. Jefferies has indicated that this potential acquisition makes it unlikely for REA to pursue Rightmove again.

The analyst note from Jefferies also pointed out additional challenges for REA. On 6 February, REA’s chief executive, Owen Wilson, announced his intention to retire in the second half of 2025. Wilson, highly regarded in the industry and a key architect of the previous Rightmove bid, will leave a significant gap in leadership.

Jefferies has set a target price of 495p for Rightmove’s stock, representing a 24% downside from the current price, according to finance website London South East.

In related news, a petition calling for a Competition and Markets Authority investigation into Rightmove’s pricing has garnered 1,381 signatures.