BackNews Corp. to buy real estate business Move in $950 million deal
News Corp. plans to hold 80% of Move, with REA Group, which is 61.6% owned by News Corp., owning the rest
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Helsinki: News Corp., the newspaper publisher controlled by Rupert Murdoch, agreed to buy US online real- estate business Move Inc. for $950 million, net of the target’s cash balance.
Move shareholders will get $21 a share in cash, New York- based News Corp. said on Tuesday in a statement.
That’s 37% more than Move’s closing price on Monday. News Corp. plans to hold 80% of Move, with REA Group Ltd., which is 61.6% owned by News Corp., owning the rest.
The purchase would give News Corp. the Realtor.com website, allowing it to expand in real-estate listings as advertising revenue sputters.
The publisher, completing its first full year as a stand-alone company, last month reported quarterly earnings that missed analysts’ estimates as it struggled in its transition from print to digital.
Move reported $29 million in adjusted earnings before interest, taxes, depreciation and amortization on revenue of $227 million for 2013.
Move shares closed 4.9% higher on Monday at $15.29 in New York trading. The stock has lost 4.4% this year. News Corp. fell 1.1% to $16.80. Reuters
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