NEW YORK CITY—Seeking to boost its presence in the online real estate listing business domestically, News Corp. said Tuesday it would acquire Move Inc. for $21 per share, or about $950 million. The owner of websites such as Realtor.com, ListHub and SeniorHousingNet.com, Move will remain headquartered in San Jose, CA as an operating business of News Corp.
Tuesday's announcement comes about two months after Seattle-based Zillow Inc. said it would acquire competitor Trulia for $3.5 billion in stock, thereby creating the largest online real estate advertising firm. News Corp. notes that residential agents and brokers are expected to spend approximately $14 billion this year to market homes, up from approximately $11 billion in 2012), and an additional $11 billion will be spent by mortgage providers.
Thanks largely to its strategic relationship with the National Association of Realtors, which has given the News Corp. deal its blessing, Move says it displays more than 98% of all for-sale properties listed in the US, sourced directly from relationships with more than 800 Multiple Listing Services across the country. The Move Network of websites, which also includes Move.com, reaches approximately 35 million people per month.
News Corp. says the acquisition will increase Move's online and mobile reach and facilitate cross-platform promotion. Bloomberg reported Tuesday that the acquisition would boost News Corp.'s revenues from digital real estate services by more than 50%.
“We have great faith in America's potential and the long-term asset value of housing, which is continuing its recovery and has yet to regain its full potency,” says Robert Thomson, News Corp.'s chief executive. “It is forecast that the number of millennial households will increase from 13.3 million in 2013 to 21.6 million in 2018, and they will spend more than $2 trillion on home purchases and rent by 2018. Many will begin their search online and use tools and content on Realtor.com.”
When the deal closes, News Corp. will hold an 80% stake in Move Inc. REA Group Ltd., which is 61.6% owned by News Corp and operates the Australian residential property website realestate.com.au, plans to hold a 20% stake.
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