Rea Group Ltd · ASX:REA
Rea — Merger or Acquisition (October 2014)
17 slides from Rea's merger presentation, Oct 1, 2014
Slide 1: News Corp Investor Presentation and script re: Move, Inc.
1 October 2014 Company Announcements Office For personal use only Australian Securities Exchange Limited Level 4, Stock Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, News Corp Investor Presentation and script re: Move, Inc. Please find attached News Corp Investor presentation and
Slide 2: Acquisition of Move, Inc.
Acquisition of Move, Inc. For personal use only 30 September 2014
Slide 3: Disclaimer: Forward-Looking Statements
Disclaimer For personal use only Forward- Looking Statements This document contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to factors and uncertainties that could cause actual resul
Slide 4: Transaction Highlights
Transaction Highlights For personal use only Acquisition of Move (Nasdaq:MOVE), a leading US digital real estate company, for $21.00 per share or approximately $950 million, net, via an all-cash tender offer • Leading online real estate platform serving the needs of both consumers and Realtors® in p
Slide 5: Framing the Opportunity: Large, Growing, and Dynamic US Residential Real Estate Market
Framing the Opportunity: Large, Growing, and Dynamic US Residential Real Estate Market For personal use only US Residential Real Estate Market ~$14bn Annual Marketing Spend from Agents & Brokers • 1.1 million Realtors® ~$1bn at Move, Zillow, • More than 5 million homes bought / sold per and Trulia a
Slide 6: Overview of Move
Overview of Move For personal use only Key Assets At-A-Glance2 • A leading platform for consumer search with the • $227 million of revenue and $29 million of Adjusted most accurate and timely for-sale listings data EBITDA3 for the year ended December 31, 2013 • Highly engaged and transaction-ready a
Slide 7: Move's Unique Relationship with NAR
Move’s Unique Relationship with NAR For personal use only • Move has exclusive and perpetual right to operate realtor.com®, the official site of the National Association of Realtors® (NAR) • NAR supports realtor.com® through its own advertising budget • Long-term platform to support the value that R
Slide 8: Move Provides Leading Destinations for Consumers to Find Homes
Move Provides Leading Destinations for Consumers to Find Homes For personal use only Revenue per Unique Visitor • Move gets listings data directly from $1.86 800 MLSs around the country covering Trulia.com1 Competitor $1.24 more than 98% of for-sale home listings Competitor Zillow.com2 $0.97 #1 Sour
Slide 9: News Corp and REA Uniquely Positioned to Capture Move's Long-Term Opportunity
News Corp and REA Uniquely Positioned to Capture Move’s Long-Term Opportunity For personal use only • Extensive News Corp marketing resources and reach Broad Reach of 500mm average monthly page views through WSJ Digital Network including MarketWatch1 Media Footprint Nearly 74mm households through Ne
Slide 10: Transaction Overview
Transaction Overview For personal use only • Acquisition of 100% of Move for $21.00 / share in cash Value • Approximately $950 million aggregate net purchase price • Signed acquisition agreement between News Corp and Move to be followed by a tender offer and merger Structure • REA Group (ASX:REA), m
Slide 11: Summary
Summary For personal use only Large, underdeveloped digital real estate market opportunity in world’s largest market Acquisition of digital platform with unique strategic attributes: listings data, customer software, and NAR relationship News Corp and REA well-positioned and committed to accel
Slide 12: News Corp Script: Move, Inc. announcement
News Corp Investor Presentation Script: Move, Inc. announcement dated 30 September 2014 For personal use only Mike Florin Good morning and thank you for joining. On the call today are Robert Thomson, Chief Executive, and Bedi Singh, Chief Financial Officer of News Corp. After today’s prepared remark
Slide 13: For personal use only
which plans to be a 20% owner of Move and a contributor to and beneficiary of its flourishing in the future. As we highlighted in our Investor Day over a year ago, the two themes that will drive the success of the new News Corp are digitization of our asset base and globalization. We For personal us
Slide 14: For personal use only
Thus we think there is an enormous opportunity for value creation in the US given the early stages of the shift to online advertising for real estate, and the overall size of the market relative to the markets in Australia and the UK. That is aside from the value that we believe Move will create for
Slide 15: For personal use only
As I mentioned, Move provides the most accurate and up-to-date for-sale listing data in the industry. On Slide 7, we’ve outlined the fact that Move’s Realtor.com is the preferred destination for consumers to find the home they actually buy, and is also the number one source of leads for Realtors. Ov
Slide 16: For personal use only
product development to advance Move into a leadership position in the US online real estate sector. As a result, we expect the acquisition will likely be very modestly EPS dilutive in the short term. As of December 31, 2013 Move had approximately $750M of available gross NOLs against For personal us
Slide 17: Forward-Looking Statements
Forward- Looking Statements This document contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to factors and uncertainties that could cause actual results to differ materially from thos