news corp

News Corp buys MOVE operators of Realtor.com

by Victor Lund on September 30, 2014

And so it goes. Move, the operators of the National Associaton of REALTORS portal called Realtor.com have agreed to sell the company to News Corp in an all-cash deal valued at $950 million. MOVE’s board of directors were swift to approve the offer, representing a 36% bump in the value of the company. News Corp owns other real estate assets including The Wall Street Journal (popular spot for luxury property advertising) and Australian real estate portal – realestate.com.au (part of the REA Group). REA Group will apparently pay for 20% of MOVE, and News Corp will pay the rest. This is a pretty bullish acquisition. It demonstrates the belief that there is a lot of growth on the horizon for portals in the US Market. To me the future looks pretty competitive with lots of well funded competitors dueling it out. MOVE has made a number of acquisitions over the years to diversify revenue away from the portal offering. Aside from Realtor.com, Top Producer is a solid contributor to the company’s success and revenue. I wonder if the new owners will shed some of those assets and focus purely on MOVE.com and Realtor.com. I also imagine that News Corp will be a little more aggressive in wielding the leverage it has with ListHub in a couple of ways – more international expansion and tighter agreements with publishers. Or not. They say that they have shared vision and shared values. Congratulations to the MOVE shareholders and executives. Nice win. My hope is that Joe Hanauer will be retained to continue is spectacular mission to support Realtor.com. Below are three clippings – letter from NAR to the membership – letter from MOVE to industry leaders – and the press release – all in one place for your pleasure. By the way – does anyone know how much stock News Corp and REA Group have invested in Zillow and Trulia – I think they are partners in all of these firms now. Pretty cool strategic investment strategy. Letter from NAR to the Membership Dear NAR Member, Today marks an extraordinary turning point in the history of realtor.com®. 

The website pioneered online real estate and was No. 1 in that space for 15 years. In recent years, even as realtor.com®’s traffic grew, deep-pocketed Internet startups succeeded in eroding the site’s consumer mind share. One year ago, the National Association of REALTORS® altered its operating […]

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