Nine Entertainment said the company supported CoStar’s acquisition after considering its shareholders’ best interests.
Nine Entertainment announced on May 9 that it had entered into a binding deal with U.S.-based CoStar Group to sell its entire stake in Domain, one of Australia’s largest real estate portals.
The agreement, known as a scheme implementation deed, outlines the process for CoStar, valued at US$32 billion, to acquire Domain at $4.43 per share.
Domain currently has a market capitalisation of around $2.7 billion.
The transaction is expected to be finalised in the third quarter of 2025, pending regulatory and shareholder approvals.
Nine will receive around $1.4 billion for its 60 percent stake in the digital platform. Prior to the deal, CoStar had acquired 16.9 percent of Domain’s shares in February.
In a notice to shareholders, Nine said the decision reflected the best interests of investors.
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“Noting the unanimous recommendation of the Domain Board, Nine intends to vote all of the Domain shares it holds or controls in favour of the scheme, in the absence of a superior proposal and subject to an independent expert concluding that the scheme is in the best interests of Domain shareholders.”
Nine also noted that the transaction would result in a cash surplus and that it would distribute a portion of the proceeds to shareholders in the form of fully franked special dividends.
In addition, Nine said the deal would strengthen its position as Australia’s largest locally owned media company.
While Domain is a well-known digital property portal in Australia, it currently trails behind its chief rival, REA, a subsidiary of News Corp, in terms of growth.
