After the Fox merger was tabled, News Corp. plans to sell to CoStar by

© Reuters. After the Fox merger was tabled, News Corp. plans to sell to CoStar

By the staff

While Rupert Murdoch withdrew his proposal to merge News Corp (NASDAQ: ) and Fox (NASDAQ: ), News Corp. has his own business in the works related to his desired consumer properties –

News Corp. confirmed on Tuesday evening that he was involved in talks with them CoStar Group (NASDAQ: ) regarding the potential sale of Move, Inc., operator of The deal could be valued at $3 billion, according to Bloomberg News.

The company said it is “actively evaluating opportunities to maximize shareholder value, and discussions with CoStar Group are part of that ongoing effort.” Each deal would support its strategy to optimize the value of its digital real estate services segment while strengthening’s competitive position in the marketplace. While talks are ongoing, News Corp. said there was no guarantee that any transaction would result from these talks.

CoStar Group investors should not be surprised by the move as the company has previously announced that it is raising money to finance “strategic acquisitions”. Additionally, with its dominance in the non-residential side of the business, analysts and investors expected the company to address the residential side.

Analysts at BMO Capital say the acquisition “makes sense” for CoStar given: “1) CSGP’s large cash position; 2) the depressed state of the residential market (favorable for buyers) and 3) CSGP’s preference for an advertising model and the ability to move the margin higher.”

The news could be seen as a negative for residential competitor Zillow Group (NASDAQ: ), as Move is one of the largest advertising platforms in the US behind Zillow. Furthermore, there have been rumors that CoStar might target Zillow in a deal instead.

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