The Australian digital property behemoth REA Group, which is mostly controlled by Rupert Murdoch's News, launched a prospective cash and share offer for the whole issued and to be issued share capital of Rightmove.

REA acknowledged considering a possible buyout of Rightmove in an exchange filing on Monday. Rightmove has not yet received an official offer from REA, but the company is actively investigating the possibility of doing a deal that includes both shares and cash.

One of the largest companies in the digital real estate sector may be formed by the amalgamation of these companies. In their specialised residential real estate sectors, both companies are industry leaders.

The combined business would provide more products and services, be the industry leader in Australia and the UK, and be better able to deliver value to its clients and end users.

An exciting opportunity exists for the investors in both companies: this planned merger. Shareholders of Rightmove may see a significant gain in the value of their shares as well as future opportunities for growth within a larger company. REA stockholders may look forward to gains from increased operations and pooled resources, as well as access to the lucrative UK property market.

It is not guaranteed by the announcement that a formal offer will be made. The guidelines state that REA has until September 30th to either affirm they won't pursue the purchase or reveal a definite intention to make a bid. If the Takeover Panel gives its permission, this period may be extended.

(Sources: investing.com)