NEWSFLASH: Digital portals and Zoopla to merge
Friday 14th October 2011
The Digital Property Group and Zoopla have just announced that they have agreed to merge their respective businesses.
The former rivals say the deal will create a credible challenger to long-standing market leader Rightmove. Rightmove shares dipped on the announcement to the stock exchange at 10.30am.
In a joint statement, the two companies said the merger is set to be a big win for estate agents and house-builders across the UK, creating a clear alternative in a market that has had a single dominant player for a number of years.
Their statement said: “The combined business will be in a position to offer a superior value proposition and wider exposure and is expected to result in an audience to rival Rightmove, delivering at least as many enquiries to its members.”
The merger will bring together brands including Findaproperty.com, Zoopla.co.uk and Primelocation.com.
Alex Chesterman, founder and CEO of Zoopla, said: “This deal will be transformational for both businesses, allowing us to compete effectively in a market where it takes significant investment to challenge the current market leader.
“But more importantly, the deal will deliver real value for UK estate agents and developers, and we will be in a position to provide them with the widest possible exposure and be their most cost-efficient marketing partner.”
Mark Milner, CEO of the Digital Property Group, owned by the Daily Mail which will hold a 55% stake in the new company, said: “The combined strengths of both businesses will result in world-class products and a team that continues to lead innovation for property consumers and agents alike.
“The focus will remain on providing market-leading products for our users, and an excellent service in terms of value and performance for our members, and this deal will allow us to deliver even further on that mission.”
The two companies have informed the OFT of their intention to merge.
More news on this when we get it.
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