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Virginia-based commercial behemoth CoStar Group is looking to strengthen its international influence, as the company makes a bid to purchase Australian real estate classifieds firm Domain for a rumored $2.7 billion.
Domain is the second-largest real estate classifieds site in Australia, next to News Corp-owned REA Group, which has dominated the market for two decades. According to reports from Reuters and The Sydney Morning Herald, CoStar began buying Domain stock last Thursday for AUD 4.20 per share, which represents a 34.6 percent premium based on the latest closing price of AUD 3.12.
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CoStar’s stock rush, which was done with the help of Macquarie Capital, has given them a 19 percent stake in Domain, the reports said.
Domain’s parent company, Nine Entertainment, began the year with a massive restructuring of the company’s executive board and divisions in an effort to save AUD 100 million over the next two years. Nine reduced its divisions to streaming and broadcast, publishing, and marketplaces, the latter of which includes Domain and automotive content platform, Drive.
“Our operating model reset will help accelerate the strategic transformation underway at Nine by improving how the different parts of the business work together,” Nine acting CEO Matt Stanton told Variety in January. “Our new approach will better position the business to manage the challenging external environment and ensure the company is future-fit to sustainably deliver for our consumers, partners, shareholders and people.”
Nine Entertainment and Domain have declined to comment on the deal. Meanwhile, a CoStar spokesperson said the company does not comment on speculation.
“CoStar Group continuously evaluates M&A opportunities across a broad range of companies to maximize shareholder value,” the spokesperson told Inman in an emailed statement. “We do not comment on market rumors or speculation.”
The Domain news continues an ongoing battle between CoStar, News Corp and Realtor.com, which began when CoStar purchased residential portal Homes.com in 2021. In 2024, the company spent $1 billion on marketing for the portal.
