The negotiations come at a time when Nine is seeking greater control over Domain, following the resignation of former chair Peter Costello amid tensions with Domain's chair, Nick Falloon.

This latest bid, revealed on March 27, 2025, adds an additional 23 cents per share, raising the total deal value from $2.7 billion to approximately $2.79 billion.

Nine Entertainment, which controls Domain, supports the decision to engage with CoStar, emphasizing the move is in the best interests of its shareholders.

While Domain's board has unanimously agreed to engage with CoStar, they caution that a deal is not guaranteed.

CoStar, an American property analytics firm, is making this bid as a strategic entry into the Australian property market, which is experiencing significant price growth due to a housing supply shortage.

Domain Holdings Australia Ltd has announced it will engage with CoStar Group Inc following an increased takeover offer, which now stands at A$4.43 per share, up from A$4.20.

If the acquisition proceeds, it could significantly reshape the Australian media landscape, as Domain represents over half of Nine's market capitalization, potentially yielding around $1.4 billion in post-tax cash proceeds for Nine.

CoStar's CEO Andrew Florence recently visited Australia and attended a gathering in Sydney with key business figures, including Nine's CEO Matt Stanton.

Domain stated that CoStar's offer is its 'best and final price,' and plans to conduct due diligence after discussions with Nine, which owns a 60% stake in Domain.

Notably, Domain's profitability has outpaced Nine's publishing division, reporting a profit of $77.8 million and a revenue growth of 7% to $217.2 million.

As Australia's second-largest online real estate listing platform, Domain is crucial for Nine, especially as traditional media advertising revenues continue to decline.

Despite the improved offer, Domain has advised its shareholders to take no action at this time, emphasizing that there is no guarantee of a binding agreement.