In a bid to expand its digital marketing business, News Corp. has announced it would buy property websites owner Move for about $950m.
Rupert Murdoch’s company said it would pay $21 per share, a 37% premium to Move’s closing price on Monday, while a 20% stake in Move, worth about $200m, will go to Australian real estate website REA Group, which is 61.6% owned by 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,’ Robert Thomson, News Corp. chief executive, said in a statement.
The two firms said in a joint statement that Move’s network of websites has a monthly audience of about 35m and News Corp. said it would begin a tender offer for Move’s shares within 10 business days.
News Corp. added that it expects the deal to be finalised by the end of 2014.
Move’s shares soared 36.82% to $20.92, while News Corp.’s shares dropped 0.74% to $16.67 at 15:55 on Tuesday.