U.S.-based online real estate company CoStar Group is set to make a A$2.7 billion ($1.72 billion) bid for Australian property classifieds firm Domain Holdings, according to sources familiar with the matter. CoStar has already started acquiring Domain shares, purchasing them at A$4.20 per share and accumulating up to 19% of the company, with the intention to make a full takeover offer at the same price.
This proposed offer comes with a significant premium—34.6% higher than Domain’s most recent closing share price of A$3.12, which has seen a 23.3% increase in value since the start of 2024. Domain, in which Australian media group Nine Entertainment holds a 60% stake, has yet to comment on the bid or respond to requests for further information.
CoStar, a major player in the U.S. online real estate market, would be making its first foray into the Australian market through this acquisition. The company’s offer signals a growing interest in expanding its international footprint, particularly in the highly competitive property classifieds sector.
Domain, which has been performing strongly, reported a 28.3% rise in half-year profits to A$33.1 million, excluding significant items, alongside a 7.4% increase in revenue to A$217.2 million. This financial performance, combined with the strategic premium on offer, suggests a serious move by CoStar to expand its business operations into Australia.
The news of the acquisition bid has raised anticipation about potential future moves in the market, and analysts are closely watching to see how Domain’s majority shareholder, Nine Entertainment, responds to the offer.
