CoStar is significantly expanding its international footprint with an acquisition of the Australian portal Domain, one of the largest real estate consumer websites down under, according to regulatory filings yesterday.
The deal was previously proposed months ago, with CoStar Group CEO Andy Florance telling investors earlier this year his company could bolster Domain to compete with REA, the dominant consumer portal in Australia, owned by News Corp.
News Corp also owns Realtor.com®, which continues to battle CoStar-owned Homes.com over domestic residential marketshare.
After initially offering $1.7 billion, Domain agreed to a $1.9 billion offer from CoStar, according to the regulatory filing.
“The Domain Board has carefully considered the CoStar proposal and believes it represents compelling value and a high degree of certainty for Domain shareholders, through the cash offer and limited conditionality,” the company said in a statement. “This proposal is an endorsement of the strong fundamentals of Domain, and we are confident this position will be further strengthened with CoStar’s support.”
“As one of the first and most experienced digital real estate companies in the world, CoStar Group brings a proven track record of building high-traffic online marketplaces that deliver real value,” said Florance in a separate statement. “With our technology, scale and the innovation we’re known for, we see a tremendous opportunity to enhance the Australian property market.”
CoStar had previously taken a 17% share in Domain. Shareholders will vote on the acquisition later in the summer, and the deal must still go through regulator approval.
The move marks another aggressive step by the American-based real estate conglomerate to expand its residential footprint. In 2021, CoStar bought Homes.com for $156 million, subsequently investing over $1 billion marketing that platform, with a long-term goal of up to $10 billion in subscriptions.
In 2023, CoStar bought UK residential portal OnTheMarket for approximately £100 million (or $125 million), claiming to have increased traffic 212% to that platform, and grown listings by 45%. REA tried and failed to purchase another UK portal, Rightmove, with Rightmove rejecting an $8.3 billion offer back in September.
In his statement, Florance also promised to “create value for our customers globally” through use of “Domain’s learnings and best practices.”
Domain, which has struggled in recent years according to Australian media, was also sued by REA in 2024 for alleged copyright infringement, accused of stealing listing photos and floor plans from its rival.
Assuming the deal receives all necessary approval, it is expected to close in mid-August, according to the filing.
