Property listing platform Rightmove has turned down a £5.6 billion acquisition offer from Australian rival REA Group, which is majority-owned by Rupert Murdoch’s News Corporation. Rightmove’s board dismissed the bid as “wholly opportunistic,” stating that REA Group had “fundamentally undervalued Rightmove and its future prospects.”

In a statement issued on Wednesday, Rightmove’s board expressed concerns that the offer did not reflect the company’s true value. The bid, which valued Rightmove at over a quarter of its share price as of August 30, would have resulted in Rightmove shareholders owning approximately 18.6% of the new combined entity.

REA Group responded by announcing plans to seek a secondary listing of all its ordinary shares in London. The company aims to establish a property business with “strong margins and significant cash generation,” hoping to become a leading player in both the UK and Australian markets. REA contends that acquiring Rightmove would enhance the property experience for buyers, sellers, and renters in the UK, benefiting the overall property market ecosystem.

REA has until 5pm on September 30 to either make a new bid or formally withdraw its offer. This rejection follows a series of setbacks for the Murdoch business empire, including the recent failure of Talk TV.

Additionally, hedge fund Starboard Value has filed a shareholder resolution to limit Rupert Murdoch’s influence at News Corp. The fund seeks to eliminate the dual-class share structure that currently grants Murdoch 40% of the voting rights despite holding only a 14% equity stake. Murdoch stepped down as chairman of Fox and News Corp in 2023, with his son Lachlan taking over.

Earlier this year, News Corp signed a multi-year partnership with AI firm OpenAI, integrating content from its publications such as the Wall Street Journal, the New York Post, and the Times into AI models like ChatGPT. Murdoch has been involved with REA since 2001 and now holds a 61% stake through News Corp. His net worth is estimated at over $20 billion (£15 billion).