Melbourne-based REA owns a portfolio of online residential property brands, led by the realestate.com website. It also operates across Asia and in the US.
The company said: “The REA board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders, combining robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns.
REA warned there was no certainty that an offer would be made and said shareholders did not need to take any action. It has until the end of September to make a formal offer.
Rightmove has been contacted for comment.
A swoop for Rightmove would mark the latest takeover of a UK property company after rival OnTheMarket was snapped up by US commercial real estate group CoStar for £99m last year.
Jessica Pok, an analyst at Peel Hunt, said: “It does not come as a surprise to us today that Rightmove has become an acquisition target, given the rating has been subdued for some time due to the negative sentiment on the UK housing market and concerns over competitive threats from CoStar/OnTheMarket.”
There has been turmoil within Mr Murdoch’s media empire as the 93-year-old mogul prepares to hand over control to his eldest son, Lachlan.
Mr Murdoch is attempting to change the terms of his family trust to ensure that Lachlan has sole control of his TV and newspaper assets.
Such a move would shift control away from his other children – James, Elisabeth and Prudence – who are considered to have more liberal politics than their father. The legal dispute will go to trial in Nevada later this month.