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News Corp
Through REA Group's acquisition, News Corp aims to strengthen its North American presence while addressing competitive pressures and investor concerns.
(AI video summary)
This video was created on 2 October 2025 for IG audiences by ausbiz.
ASX code: NWS
News Corp expands through REA Group
Today's focus is on News Corporation News Corp, which owns a majority stake in REA Group. REA has acquired a controlling interest in a Canadian company specialising in virtual 3D property tours, strengthening its position in the North American property imaging market. This strategic move, influenced by the Murdoch family, highlights diversification within News Corp's portfolio.
Market reactions and investor concerns
The acquisition has occurred alongside a sell-off in media stocks, partly due to REA's high valuation. News Corp derives 21% of its revenue from REA, and investors are cautious about the premium paid for the Canadian company. Concerns centre around potential disruptions from artificial intelligence (AI)-powered models in the property imaging sector, which could impact future earnings growth.
Investment outlook
REA's acquisition is seen as a strategy to counter competition from Domain, owned by TPG Capital's affiliate, CoStar Group. Although News Corp holds a diversified portfolio, recent sector volatility and technological changes present challenges. Analysts suggest a 'hold' position for News Corp due to current uncertainties.
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