PHOTO: Dan White – Ray White Group. FILE
📉 Real Estate Giants Plot a Bold Move
In a dramatic turn for Australia’s property industry, some of the country’s most powerful real estate players—including Ray White and McGrath Estate Agents—secretly met with Nine Entertainment to discuss buying out Domain and taking it private.
The group, which represents nearly 20% of residential listings, was concerned about Domain’s declining competitiveness against the market-dominant REA Group, owner of realestate.com.au.
Australia’s REA Group’s dominance in the property listings market concerning
🧠 “It pays disproportionately to be the largest,” says Morningstar analyst Roy van Keulen.
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💰 The $1 Billion Idea That Never Took Off
In March 2025, a high-level meeting at Nine’s North Sydney HQ brought together:
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🧑💼 Matt Stanton (CEO, Nine Entertainment)
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🏢 Dan White (Managing Director, Ray White)
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🧓 John McGrath (Founder, McGrath Estate Agents)
Their plan? To partner with Nine and buy the 40% of Domain that Nine didn’t already own—valued then at over $1 billion.
But before the idea could advance, US property tech giant CoStar swept in with a $2.8 billion takeover offer that stunned the market.
🏦 CoStar’s Game-Changing Bid
In February 2025, CoStar quietly acquired 16.9% of Domain. Just a month later, it launched a full-scale bid at $4.43 per share, a 42% premium compared to Domain’s earlier price.
📈 This bid:
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Valued Domain at 20x earnings
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Was quickly supported by Nine’s board
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Promised at least $780 million in special dividends to Nine shareholders
🔎 Who is CoStar?
Founded in the U.S., CoStar has expanded aggressively, owning Homes.com in America and OnTheMarket in the UK. CEO Andy Florance believes Domain can be revitalized to challenge REA and reclaim market share.
📊 REA’s Dominance: Too Big to Beat?
While Domain stagnated, REA Group surged:
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📉 Domain’s share price fell 12% over 5 years
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📈 REA’s rose 134% during the same time
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💵 It now earns 4x the revenue and 9x the earnings of Domain
Listing a home on REA’s site can now cost up to $5,000, compared to just $75 in 2009.
REA is controlled by News Corp, the empire built by billionaire Rupert Murdoch, and remains under the microscope of the Australian Competition and Consumer Commission (ACCC) due to its market power.
🏘️ Why Real Estate Agents Are Worried
The rapid rise in digital listing fees has squeezed agents’ profits.
💬 “As the listing fees grow, their own profit decreases,” explains Roy van Keulen.
The industry’s top players feared that Domain was no longer a viable alternative to REA, and without intervention, REA’s dominance would worsen, further driving up costs and limiting consumer choice.
🔮 What’s Next for Domain?
With the CoStar deal pending final approvals, Domain may get the fresh leadership and investment it needs to mount a serious challenge to REA.
Meanwhile, Nine stands to walk away with:
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💵 $1.4 billion in proceeds
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📉 Less exposure to a struggling asset
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🎯 A chance to reinvest in other growth areas like streaming (Stan) or media
🧭 The Bottom Line
This episode underscores the power struggles behind Australia’s online real estate market, where tech platforms—not just agents—now call the shots.
🔔 Whether CoStar can turn Domain into a true REA challenger remains to be seen, but one thing’s clear: real estate has become a battle of data, dollars, and digital dominance.
📌 Key Takeaways:
✅ Top agents tried (and failed) to take Domain private
✅ CoStar’s $2.8B offer overshadowed their bid
✅ REA’s market control continues to concern the industry
✅ Domain’s future now rests in the hands of a US tech giant
SOURCE: AFR