News corp moves into us online real estate
Rupert Murdoch has conquered TV. He has conquered newspapers. Now, he wants to sell your US home. Media giant News Corp has announced that it will buy Move Inc., operator of Realtor.com. The $950 million deal will see the company acquire Move for $21 per share, an agreement that will give News Corp control over the advertising of more than 98 per cent of all for-sale properties in the US.
News Corp is no stranger to the online property listings game, though: REA Group Limited, which is 61.6 per cent owned by the company, operates Australia's leading property portal, realestate.com.au, which will also hold a 20 per cent stake in Move, alongside New Corp's 80 per cent.
Murdoch's shift to American real estate comes at a time when the market is gathering momentum as it recovers from the financial crisis. More than 5 million homes are sold every year in the US, generating more than $1 trillion.
News Corp says the acquisition will "accelerate" its digital and global expansion, with its media platforms and "compelling content" expected to "turbo-charge" traffic growth to Realtor.com.
"We intend to] create the most successful real estate website in the US," says Robert Thomson, Chief Executive of News Corp.
"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 added. "We certainly expect this deal to amount to far more than the sum of the parts."
"News Corp’s acquisition of Move speaks powerfully to the quality and value of our content, audience and industry relationships," commented Steve Berkowitz, Chief Executive Officer of Move.
"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."
Move has an exclusive, strategic relationship with the National Association of Realtors. NAR has already given its consent to the deal, with President Steve Brown hailing the partnership is one that will "help shape the future of real estate".
The deal follows the recent acquisition of Trulia by Zillow for $3.5 billion. With agents and brokers predicted to spend $14 billion in marketing of homes this year, up from an estimated $11 billion in 2012, is this the year when the global property industry booms once more? We discuss the signs in our September podcast - click here to listen.