Rupert Murdoch’s News Corp is acquiring Move Inc, a digital company which owns a bunch of websites including real estate site realtor.com, in a deal worth about $US950 million.
News Corp will acquire all outstanding Move shares for $21 a piece, to the tune of about $US950 million via an all-cash tender offer.
The offer, which has been unanimously approved by Move’s board, is 37% over the company’s stock closing price on Monday.
In Australia News Corp holds a 61.6% share in REA Group, the operator of property site realestate.com.au.
Under the deal, REA will hold a 20% stake in Move with News Corp retaining the other 80%.
REA’s share will be acquired for about $US200 million.
The acquisition will continue News Corp’s transition away from traditional print media and increase its position in online marketplaces.
“We intend to use our media platforms and compelling content to turbo-charge traffic growth and create the most successful real estate website in the US,” News Corp CEO Robert Thomson said.
“We are building on our existing real estate expertise and expect to leverage the potential of Move.”
News Corp said the acquisition will help it capitalise on the growth of the US real estate sector where it says more than five million homes are bought and sold each year to clock up a $1 trillion transaction volume.
It expects to spend about $14 billion in 2014 on marketing homes, up from about $11 billion in 2012.
Launched in 1993, Move employs 913 people and also owns ListHub, a digital platform which aggregates data to more than 130 online publishes.