Speculation bid will need to be a fair bit higher to get across the line.
At a 35% premium the offer would be ~750p / ~£5.95b.
Assuming the extra is all cash, News Corp apparently don't want to go below a controlling stake, $5.4b will needed, so roughly $5b in debt.
REA and Rightmove will be pro forma at 3.7x debt to EBITDA. Company will be quite indebted, although the cash flow quality of the combined business would be excellent.
REA reportedly asking around for bridge finance options to do a deal. Appears likely a higher offer will be made.
Rightmove is a high quality business, have read a bit about it now, albiet it is a mature lower growth company and is subdued at the moment.
Perhaps some opportunity there, certainly is much cheaper than REA even will the fair weather premium.
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