DPG and Zoopla to merge
Digital Property Group and Zoopla are to merge to create a credible rival to Rightmove.
Under the proposed merger, A&N Media, the consumer media division of Digital Mail and General Trust, which owns DPG, will retain a 55% interest in the newly-merged entity.
The newly-merged businss, which has yet to be named, will create a stable of portal brands, including Findaproperty.com, Zoopla.co.uk and Primelocation.com.
A new rate card is also yet to be confirmed, as is the new chief executive officer.
Alex Chesterman, founder and chief executive officer of Zoopla says: “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, chief exectuive officer of Digital Property Group, says: “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.”
Martin Morgan, chief executive of DMGT, says: “This merger will create a genuine opportunity to challenge the dominant market leader in the online property sector. We believe that the combination of our respective digital property assets will benefit both consumers and clients.”
A spokesman for Rightmove says: “The property portal market has always been highly competitive. We have always embraced this level of competition, using it as a key driver to consistently improve the services we offer to advertising members and the home moving public, and maintain our position as the UK’s number one property website.
“Although a merger may reduce the level of choice available to consumers, we hope this move can be of benefit to the UK property industry.”
- Don’t miss Monday’s e-newsletter for an exlcusive interview with Alex Chesterman about the implications of the deal for agents.
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