CoStar gets approval to proceed from Nine’s board for Domain offer
US-based real estate analytics titan CoStar Group has secured an agreement to acquire Domain Holdings Australia in a deal valuing the company at $3 billion.
The acquisition, backed by Domain’s board and majority shareholder Nine Entertainment, would see CoStar take full ownership of the property listings firm by purchasing the remaining shares it does not already hold at $4.43 apiece – a notable jump from its initial $4.20 offer in February.
The revised bid, described as “best and final,” represents a 42% premium to Domain’s market price prior to the first public disclosure of the takeover approach.
If ratified by shareholders in a vote expected in August, the transaction would not only mark CoStar’s first major foray into the Australian market, but also intensify global consolidation among digital real estate platforms amid shifting interest rate cycles.
For Nine Entertainment, which owns around 60% of Domain, the sale would result in approximately $1.4 billion in cash proceeds. The company has confirmed its support for the deal, stating in a separate note to investors that it intends to divest its holding in full.
Domain’s board has granted CoStar a period of exclusive due diligence access, including to sensitive financial data, during which no rival bids will be entertained unless deemed superior. An independent expert report will also be issued to assess the fairness of the offer to minority shareholders.
The proposed buyout comes at a challenging time for real estate platforms. Listing volumes have slipped as households grapple with the rising cost of living and mortgage affordability concerns.
Yet, with the prospect of interest rate cuts emerging globally, investor sentiment toward property portals has begun to recover.
CoStar’s move continues a pattern of ambitious expansion by the company. In 2021, it mounted a high-profile bid for US property data group CoreLogic, ultimately offering a US$450 million sweetener to top competing suitors.
That bid, which underscored CoStar’s appetite for growth through acquisition, also drew scrutiny over potential antitrust issues – a reminder of the regulatory risks that may accompany aggressive consolidation.
Analysts say the Domain transaction underscores CoStar’s determination to cement a global presence in residential real estate data and listings.
While Domain has struggled to keep pace with rival REA Group – the News Corp-backed operator of realestate.com.au with a market capitalisation of nearly $29 billion – CoStar’s backing could inject fresh competitive pressure into the Australian sector.
Industry observers suggest the tie-up could eventually challenge the longstanding dominance of REA by enhancing Domain’s data analytics, product integration and advertising capabilities, potentially using CoStar’s proprietary platforms as a foundation for innovation.
The deal also aligns with a broader shift in property technology investment, as digital platforms seek to merge deep data capabilities with transactional marketplaces. For CoStar, Domain represents not just a geographic expansion, but a strategic foothold in a mature, digitally active real estate market undergoing generational transformation.
The coming months will be closely watched as regulatory clearances, shareholder approval, and market reactions shape the final outcome of one of the year’s most significant cross-border property tech transactions.
