Murdoch property empire REA Group faces challenge from CoStar

In the same period, the evaluation of the REA market fell over $ 7 billion from its maximum record in February while investors face the prospect of real competition.

Costar added a value well over $ 4 billion in the same period, which would at least partially reflect the group opportunity of the group with a chronic sub -service such as domain in a profitable two -horsepower race.

When the domain listed in 2017, it was evaluated in a quarter of the REA market capitalization. If he had kept the step with this metric, the domain would have earned about $ 8 billion now, not the 2 billion dollars to whom he was evaluated before the costa offer.

What does a giant like Rea to fear from Costar and its greatest founder of life Andy Florance?

Now we move away. Costar denies that Florance exercised his black semi -automatic pistol during a video meeting with the managers of his home in the rural areas of Virginia in 2020 – as reported by Business Insider.

“Andy Florance is a well -trained and authorized shooter that is passionate about firearms safety,” says a spokesperson.

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Costar also has problems with Business InsiderThe relationships, based on interviews with dozens of former employees, who describe in detail the inflexible thrust of floats for the domain of rivals. This included the accusations of a workplace led by incessant surveillance, humiliation and sudden dismissal of employees who did not satisfy rigorous standards.

“He seriously erroneously characterizes the experience of employees within the Costar Group and the commitment of our leadership team to provide a respectful and professional work environment for the benefit of our 6600 employees and all those we serve,” said Costar spokesman in response to the relationship.

The most significant accusation from Business InsiderThe account was of the stubborn decant of florancing to win.

In a sales event in 2008, Florance would reveal a cage in a cage called Doug, from the name of Doug Curry, the head of the rival operator Xceligent.

Florance said that Gerbill would live longer than the curry mandate at the rival group.

In 2017, Xceligent failed after losing a legal battle against Costar.

Putting these accusations on the one hand, the only fact that matters is that Florance built Costar in a business of $ 53 billion, starting from the basement of his father’s house in the 1980s.

It is right to say that, if a binding offer for domain is made and accepted, Rea faces a brutal shock of its profitable activity, which currently operates more as a monopoly than a duopoly.

Rea’s domain is so overwhelming that Morningstar analysts suggest that greater competition from Costar would allow REA to further increase prices without regulatory examination.

As for nine, the question is what it would do with $ 1.4 billion in cash that would be in the pocket from a sale of successful domains net of taxes.

Liquidity is expected to be shared with investors, will repay the debt and provides financial fire power for organic growth opportunities and acquisitions.

The challenges for the management of Nine are simple: how many liquidity will investors require?

And how do nine shareholders convince that a company that has fought to be successful with a real estate duopoly can be trusted to invest in the much more competitive media sector?

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