Nine ‘under pressure’ on CoStar bid for Domain

Nine chair Catherine West will face immense pressure to successfully negotiate the sale of real estate platform Domain to US property giant CoStar.

US property data group CoStar offered $4.20 a share, a premium of 34.6 per cent over Domain’s most recent closing price. Picture NewsWire / Seb Haggett

Nine chairwoman Catherine West will face immense pressure to successfully negotiate the sale of real estate platform Domain to US property giant CoStar as speculation swirls around her tenure at the head of the media company.

With Nine Entertainment set to release its half-yearly results on Tuesday, Ms West’s future remains unclear, particularly in the wake of billionaire Bruce Gordon’s recent move to increase his shareholding in the media company to a dominant stake. Mr Gordon’s play has prompted internal discussions at Nine about what that means for company director Andrew Lancaster, who sits on the board as a representative of the billionaire’s interests.

It’s understood that Mr Gordon now will likely push for a second board seat, which potentially would leave Ms West’s position vulnerable.

A well-placed Nine insider suggested Ms West would be pushing hard for the deal.

“The chair will be very conscious of not putting a foot wrong on this,” the source said.

“Because of the pressure, it will probably be easier to sell and capitalise on an offer above market.

“If it is knocked back and then the share price drops, the market will see it as a missed opportunity with calls for a new chairman.

“There is more risk for Catherine West in the ‘don’t do a deal’ scenario.”

Nine chair Catherine West.

The insider said it was likely that Nine would be looking to “unlock value” in its assets.

“If CoStar wants it all, does it become an aggressive takeover? If CoStar offers enough money and shareholders want that deal then the Nine board will be compelled to do what is in the best interest of all shareholders.

“CoStar must have a good read on the ballpark they need to be in to get Nine across the line.

“If you look at what is happening at Nine there is so much pressure on Catherine West, the board and Matt Stanton to do something.

“CoStar could be thinking that they might be able to squeeze Nine because of the pressure it is under.”

Adding to the internal unease at Nine is the fact the company has yet to appoint a successor to former chief executive Mike Sneesby, who left the media giant in September 2024.

Mr Stanton, Nine’s former chief financial officer, has been acting in the chief executive role for the past five months.

He is still understood to have the tentative backing of the board, but the delay in announcing the appointment suggests that certain internal powerbrokers are still mulling over the merits of other potential candidates.

It’s expected that Domain will respond this week to CoStar’s $1.7bn bid for the local real estate classifieds company.

The US property data group offered $4.20 a share, a premium of 34.6 per cent over Domain’s most recent closing price.

Citi analyst Siraj Ahmed said it was likely that the initial offer price wouldn’t be enough to seal the deal because CoStar would likely need Nine (Domain’s 60 per cent shareholder) to drive consumer share, “given Domain has seen improving audience metrics by working closely and collaborating with Nine”.

On Friday last week the media group said it would consider the deal.

“Domain is of strategic importance to Nine’s media ecosystem and our long-term growth strategy,” Nine said in a statement.

“Nine will consider the proposal with a focus on the best interest of Nine shareholders.”