REA Group has made a third offer to acquire the British property firm, Rightmove, for £6.1bn.

The Australian firm, which is owned by Rupert Murdoch, had made two previous offers for Rightmove prior to the latest bid, increasing the cash consideration each time.

The offer, which was made on 16 September, represented a 39% premium on the Rightmove closing share price of 556 pence on 30 August 2024.

Under the improved offer, Rightmove shareholders would hold around 20% of the combined group’s issued share capital following completion of the transaction.

REA said that the deal would “unlock value” for both firms, adding that it would enhance customer and consumer value across the newly created combined portfolio.

Furthermore, it said that the deal would "enhance the UK property experience for buyers, sellers and renters, positively contributing to the property market ecosystem".

However, Rightmove said that its board considered the proposals by REA to be "uncertain, highly opportunistic and unattractive", and has therefore rejected the previous bids.

Chair at Rightmove, Andrew Fisher, said: "Rightmove is an exceptional company with a very clear strategy, a consistent track record of delivery and a strong management team. The board is confident in the company's short and long term prospects, and sees a long runway for continued shareholder value creation.”

The Guardian has reported that REA is valued at £12.8bn, which is more than News Corp, its controlling shareholder.

This prompted the activist investor, Starboard Value, to put pressure on the Murdoch-owned firm to sell REA to realise its value.

Head of money and markets at Hargreaves Lansdown, Susannah Streeter, commented: "REA has shown its determination to gain a big foothold into the UK property search market by significantly upping its takeover bid for Rightmove. The group is frustrated by a lack of engagement from Rightmove which has clearly been holding out for a much higher offer after the first highly opportunistic bid. It’s now been increased by 9.2% which represents almost a 40% premium to its share price at the end of August.

"While this will certainly be very encouraging for some investors, who had seen the value of their holdings plummet from highs reached in January 2022, there is likely to be a push among others to hold out for an even better deal. Rightmove shares had been affected by the property market downturn amid a ratcheting up in interest rates. But now, with more cuts eyed on the horizon and a recovery in prices underway, there are now many more eyes on screen."

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