Domain expertise
CoStar, the US real estate company with a takeover of Domain firmly in its sights, has a track record of challenging market leaders in the US and the UK.
CoStar chief executive Andy Florance does not come across as the kind of man who likes to lose. That may bode well for the USD32 billion ($50 billion) US real estate company’s pursuit of Domain; but maybe less so for Domain’s main rival, News Corp’s REA Group.
Florance’s management style at the company he founded in 1986 is perhaps most politely described as ruthless. And his company’s aftermarket raid on Domain late on Thursday was certainly on-brand.
As Capital Brief’s John Buckley reported, the move was perfectly timed to catch Domain and its controlling shareholder Nine Entertainment off-guard. Domain’s chairman Nick Falloon was overseas on a holiday and its interim CEO Greg Ellis has only been in the job for a matter of days.
CoStar was able to secure a 7.5% stake in Domain from a single selling shareholder, later revealed as Fidelity. Macquarie Capital then entered the market on its behalf to acquire further shares, giving it a stake of about 16% in the company. Effectively, in a few short hours, CoStar has put a $400 million down payment on what it hopes will be its new Australian dwelling.
