Billionaire Media Mogul SLAMMED by UK's Largest Property Portal - What Went Wrong with the £5.6bn Deal

Rightmove, the UK's largest online property portal, has rejected a staggering £5.6 billion takeover bid from REA Group, a subsidiary of News Corp, the media conglomerate owned by billionaire Rupert Murdoch.

The offer, which was widely expected to shake up the UK's property market, was deemed 'fundamentally undervalued' by Rightmove's board, leaving investors and analysts scratching their heads.

REA Group, which operates several property portals globally, including realestate.com.au in Australia, saw Rightmove as a strategic acquisition to expand its presence in the lucrative UK market. However, it appears that the Murdoch-backed company underestimated the British firm's valuation.

Rightmove, which was founded in 2000 and listed on the London Stock Exchange in 2006, has become a household name in the UK, with millions of users searching for homes, rentals, and commercial properties on its platform.

The company's rejection of the bid comes as no surprise, given its dominance in the UK market and its impressive financial track record. Rightmove's share price has consistently outperformed the market, and its profitability has been the envy of its competitors.

REA Group's offer, which was made in cash, was seen as an attempt to snatch Rightmove at a low price. However, the UK firm's board refused to engage in discussions, stating that the proposal did not reflect the company's 'true value.'

The failed bid has left REA Group with a bruised ego and raised questions about the company's ability to execute major acquisitions. Meanwhile, Rightmove's rejection of the offer has reaffirmed its position as a market leader in the UK property sector.

As the dust settles, one thing is clear: Rupert Murdoch's News Corp will not be acquiring Rightmove anytime soon. But the question on everyone's mind is: will REA Group return with a revised bid, or will it seek alternative opportunities in the UK market?