Above, CoStar CEO Andy Florance speaking at RISMedia’s Power Broker Reception & Dinner in Orlando in November 2022.
In a blockbuster deal that could reverberate across the real estate industry and beyond, CoStar is deep in talks to purchase Move, Inc. (the parent company of realtor.com®) from News Corp.
First reported by Reuters, a News Corp spokesperson provided RISMedia with a document they said was filed on the Australian Stock Exchange, dated Jan. 24, yesterday.
That document confirmed that the company is “engaged in discussions” with CoStar “regarding a potential sale of Move, Inc.”
“There can be no assurance any transaction will result from these discussions,” the filing continued. “News Corp does not intend to make any additional comments regarding this matter unless and until it is appropriate or required to do so, or a formal agreement has been reached.”
According to a report from Bloomberg News, the deal is worth around $3 billion and could be announced within days.
Representatives of CoStar did not immediately respond to requests for comment. But a post on the company’s website Wednesday morning also confirmed that the talks were happening.
“This bold acquisition could be one of the most dramatic shifts in the history of real estate portals,” said RISMedia Founder, President and CEO John Featherston. “This move could help solidify CoStar’s position as potentially the most dominant conduit between real estate professionals and consumers.”
News Corp—the parent company of Fox News, The Wall Street Journal and a host of other media outlets—has owned Move, Inc. since 2014, when it purchased the digital real estate company for $950 million. Announcing the acquisition, then-News Corp CEO Robert Thomson called the investment in real estate portals “an important pillar” in the company’s media empire, which is owned by controversial Australian billionaire Rupert Murdoch.
CoStar, which reported $1.94 billion in revenue in 2021, has not been shy about its ambitions in the residential real estate space. Starting out focused mostly on commercial, the company began making inroads in other sectors, first in the rental space, acquiring Apartments.com in 2014 and ApartmentFinder.com the following year.
More recently, CoStar has focused directly on residential portals—picking up Homesnap.com in 2020 and Homes.com in 2021, with plans to make the latter a more collaborative, open platform. Early in 2022, CoStar CEO Andy Florance said he was “very happy” with how these acquisitions were panning out, with a 63% year-over-year increase in revenue from residential.
Back in the summer, Florance said on an earnings call that he was eyeing a “half dozen to a dozen interesting companies” as attractive options to add to the group’s umbrella. In December, RISMedia interviewed Florance about the relaunch of a new and improved Homes.com and the further integration of Homes.com and Homesnap and what that means for real estate professionals.
This is developing news. Please check back for updates.
