News Corp To Buy Move For About $950 Mln - Update

(RTTNews) - Media and information services firm News Corp (NWS, NWSA) Tuesday announced that it has agreed to acquire online real estate business Move, Inc. (MOVE) for $21 per share, or about $950 million through an all-cash tender offer. Shares of Move climbed more than 37 percent in pre-market trading.

News Corp intends to commence a tender offer for all of the shares of Move within 10 business days, followed by a merger to acquire any untendered shares.

The consideration represents a premium of 37 percent over Move's closing stock price on September 29, 2014. Further, the company will acquire shares of REA Group Ltd., for about $200 million.

REA, which is 61.6 percent owned by News Corp and is the operator of leading Australian residential property website, realestate.com.au, intends to hold a 20 percent interest in Move with 80 percent held by News Corp.

The acquisition agreement has been unanimously approved by the board of directors of both the companies. The deal is expected to close by the end of calendar year 2014.

Through realtor.com and its mobile applications, Move displays more than 98 percent of all for-sale properties listed in the US. According to News Corp, Move has the most up-to-date and accurate for-sale listings of any online real estate company in America.

"This acquisition will accelerate News Corp's digital and global expansion and contribute to the transformation of our company, making online real estate a powerful pillar of our portfolio," said Robert Thomson, chief executive of News Corp.

For full year 2013, Move reported $227 million in revenues, and $29 million in adjusted EBITDA.

Move will become an operating business of News Corp and remain headquartered in San Jose, California. The company, started in 1993, has 913 employees.

Advisors on the transaction include Goldman Sachs, as financial advisor, and Skadden, Arps, Slate, Meagher and Flom LLP, as legal advisor, for News Corp and Morgan Stanley, as financial advisor, and Cooley LLP, as legal advisor, for Move.

NWS closed Monday's trading at $16.50, down 0.78 percent.

Shares of Move ended at $15.29, up 4.94 percent. In the pre-market activity on Tuesday, the shares are up 37.08 percent.