Nine drags feet on CoStar's Domain bid as deal intrigue heats up
The legacy media operator's lack of response to a bid for its once prized digital asset Domain has added to the intrigue surrounding the closely watched deal.
Nine Entertainment's failure to meaningfully respond to CoStar's $2.7 billion bid for Domain almost a month after it landed has added to the intrigue surrounding the closely watched deal and enflamed speculation over the level of behind the scenes engagement between the companies.
Nasdaq-listed CoStar tabled its $4.20 per share offer to the Domain board on 20 February after securing a 16.9% stake following an after-hours sharemarket raid. Nine, which owns 60% of Domain, is still working on its response to the offer, according to a person familiar with the company's plans.
But the slow response has surprised onlookers, especially since Nine's now permanent chief executive Matt Stanton met with CoStar founder and chief executive Andy Florance when he visited Sydney late last year.
Three sources familiar with the transaction granted anonymity to discuss confidential matters confirmed Nine chair Catherine West did not meet with Florance during his visit. One of the sources suggested this may be a factor in Nine's strategy and response.
