Shares in Rightmove have risen by a staggering 27% in a single today following yesterday morning’s announcement by Australian portal giant the REA Group that it was considering an attempt to buy the firm.

The unprecedented rise in the firm’s shares, which rarely move up or down more than a few percent, is an indication of the premium that some investors believe REA Group will pay to persuade shareholders to agree to a takeover.

Trading has been frenetic on the London Stock Exchange, which saw the portal’s shares rise from £5.55 each on Friday afternoon to £7.08p at close of play yesterday. One investor bought over 340,000 of the company’s shares in expectation of a windfall should REA Group mount a serious attempt to bag Rightmove.

Also, existing shareholders will be happy to see such big increases in the price – Rightmove hit nearly £8 a share back in 2022 after the housing market rebounded following the pandemic but has been dwindling since then.

Full circle

Industry figure Andrew Stanton has told The Neg that, “It’s ironic how everything comes full circle – REA Group is owned by Rupert Murdoch’s News Corp which at one point tried to challenge Rightmove via its ownership of Propertyfinder,” he says.

“Murdoch also owns many newspapers in the UK, many of which have seen their advertising revenues disappear as portal’s like Rightmove have bagged agents’ marketing budgets, so buying Rightmove would solve that problem.”

Yesterday afternoon the portal acknowledged REA Group’s comments, saying: “Rightmove plc notes the announcement this morning from REA Group Ltd.

“[We] have not received any approach from REA about a possible offer for the Company.  Rightmove shareholders should take no action.”