Domain Owner Nine Asks CoStar to Up Its Bid

Nine Entertainment has asked CoStar Group to increase its bid for Domain, signalling that Australia’s second-largest property portal could soon be in play. The move follows CoStar’s initial AUD2.65 billion ($1.7 billion U.S.) takeover proposal in February.

According to the Australian Financial Review, Nine’s investment bankers have countered with a revised price of AUD4.65 ($2.90 U.S.) per share, a 49% premium on Domain’s trading price as of February 20th. This new valuation would price Domain at AUD2.94 billion ($1.8 billion U.S.), with Nine’s 60% stake worth AUD1.76 billion ($1.1 billion U.S.).

Shortly after the report surfaced, Nine confirmed ongoing discussions with CoStar but emphasized that no final agreement had been reached.

“Discussions remain confidential and incomplete — including as to the price at which CoStar might make a revised proposal,” Nine said in a statement to the Australian Securities Exchange. “There is no certainty that the discussions will lead to a revised proposal from CoStar.”

The potential deal comes amid a strong market reaction. Domain’s share price, which has already surged 40% since CoStar’s initial bid, rose another 2.2% to AUD4.44 per share before settling at AUD4.38. Meanwhile, REA Group, operator of market-leading portal Realestate.com.au, saw its stock slide 2%, extending its decline to 13% since CoStar’s February 21 bid.

CoStar’s takeover attempt began with a 16.9% stake acquisition in Domain, executed in a late-night share raid that took Nine and Domain by surprise. The next morning, CoStar proposed a full buyout at AUD4.20 per share ($2.68 U.S.).

While Domain accounts for more than half of Nine’s market capitalization, Nine has struggled with its long-term strategy for the portal which has consistently lagged behind REA Group in terms of growth.

In early 2024, Nine explored private equity deals to offload part of its stake while keeping up to 49% of Domain’s shares but failed to secure interest. Now, with CoStar on the doorstep, the Sydney-based media group appears to be leveraging the situation for a better deal—or to see just how committed CoStar is to entering the Australian market.