Why CoStar Group Stock Is Plunging Today

  • News Corp NWS NWSA abandoned discussions with CoStar Group, Inc CSGP regarding a potential sale of Move, Inc, operator of Realtor.com.
  • News Corp will continue to actively assess opportunities to support its strategy to optimize the value of its Digital Real Estate Services segment.
  • In January, News Corp confirmed discussions with CoStar regarding the potential sale to optimize the value of its Digital Real Estate Services segment.
  • Fox Corp's FOX FOXA controlling owner Rupert Murdoch withdrew the proposal to explore a potential combination of Fox and News Corp. Murdoch weighed the merger nearly a decade after the companies split.
  • On Tuesday's conference call with investors, CoStar CEO Andrew Florance confirmed that "at this point, CoStar Group is not acquiring Realtor.com." CoStar plans to continue investing in its Homes.com site, which is gaining traffic, he said.
  • "We still have a lot of work to do here," Florance said. "But we have a clear roadmap and have our heads down focused on building the best residential real estate portal in the United States."
  • News Corp, the parent of the Wall Street Journal and the New York Post, owns 80% of Move and most of the REA Group Ltd, a publicly traded online real estate business in Australia, Bloomberg reports.
  • Price Action: CSGP shares are trading lower by 10.90% at $67.75 premarket on the last check Wednesday. NWSA stock is down
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