R
EA Group, backed by Rupert Murdoch's News Corp, has abandoned its bid to acquire UK property portal Rightmove after its fourth offer was rejected on Monday. The Australian group announced it would not make a formal bid, hours after Rightmove's board turned down its £6.2bn proposal made on Friday. REA cited the failure to win over Rightmove's board as the reason for withdrawing its possible offer.

    News Corp had hoped to bolster its UK operations with a successful property company, and Rightmove's cash generativity could have supported Murdoch's media businesses. However, Robert Thomson, News Corp CEO, said the group "strongly supports" REA's decision to withdraw, praising the company's financial discipline.

    REA Group has grown significantly since Lachlan Murdoch took control in 2001, with net profits increasing by 24% last year due to price increases for online property listings. The company is seen as one of Lachlan's key contributions to the family's wealth and an important engine of growth at News Corp.

    Owen Wilson, REA CEO, said the company would focus on other opportunities, citing intensifying global competition. He expressed disappointment with Rightmove's limited engagement, which impeded their ability to make a firm offer within the available timeframe. REA had set a "put up or shut up" deadline for Monday at 5pm, but walked away five hours early.

    Rightmove rejected REA's fourth offer and said it was confident of achieving significant future value for shareholders. The company's shares fell by almost 8% to 617p on Monday in response to REA's move. Rightmove also disputed REA's claim that it had failed to engage with its offers, citing a meeting between the two companies' chairs to discuss the fourth offer.