Analysts estimate REA Group’s renewed takeover of Rightmove would add just 4% EPS accretion, deeming the deal unattractive.
JP Morgan analysts calculate that a revived bid by REA Group for Rightmove PLC would deliver only around 4% earnings per share accretion, a return they view as insufficient given the risks. The bank’s note highlights the deal’s limited upside for REA shareholders, despite Rightmove’s current share price of 430p being well below REA’s final 2024 offer of 775p plus a 6p special dividend.
Rightmove’s shares have fallen sharply since September 2025, driven by underinvestment and broader sector de-rating. The online classifieds sector now trades at roughly 11.5 times forward EV/EBITDA, down 43% from its two-year average of 20.0 times. Investors are concerned about AI disruption and rising investment needs across the industry.
JP Morgan’s analysis assumes News Corp, which owns 62% of REA, would resist dilution below 50%, and that a fully debt-financed structure would be unlikely. The bank’s stance adds pressure on REA to justify any renewed bid amid shareholder frustration over the valuation gap.