Image source: Shutterstock

Highlights

  • Domain Shares Down 0.2%: The stock trades at AU$4.30, despite a 70% gain in 2025.

  • CoStar’s Takeover Proposal: The US real estate giant has increased its bid to AU$4.43 per share.

  • Exclusivity Agreement Signed: Domain grants CoStar a four-week due diligence period, with a possible extension.

Shares of Domain Holdings Australia Ltd (ASX:DHG) edged lower on Monday, slipping 0.2% to AU$4.30 in morning trade. While the stock has surged 70% this year, today's decline follows broader market weakness, with the All Ordinaries Index (ASX:XAO) down 1.3% at the same time.

Domain’s Rapid Share Price Surge

Since February, Domain’s stock has seen remarkable gains, fueled by strong half-year earnings and a takeover bid from US-based CoStar Group, Inc. (NASDAQ:CSGP). The company’s 13 February results showed a 7.4% year-on-year revenue increase to AU$217.2 million, while net profit after tax (NPAT) jumped 28.3% to AU$33.1 million.

A major catalyst came on 21 February, when Domain shares soared 40.1% after CoStar made an unsolicited takeover bid of AU$4.20 per share—35% higher than the prior day’s closing price. CoStar also disclosed it had acquired a 16.9% stake in Domain at the same price.

Latest on the CoStar Takeover Offer

In an update on Monday, Domain confirmed it has entered into an exclusivity and process deed with CoStar for an improved cash offer of AU$4.43 per share. The revised bid, made on 27 February, has been unanimously endorsed by Domain’s board, pending shareholder approval.

Under the agreement, CoStar will conduct due diligence via a virtual data room over the next four weeks, with an option to extend the period by an additional two weeks. Despite the increased bid, the deal remains subject to several conditions, including regulatory approvals and final agreement terms.

Nine Entertainment Co. Holdings Ltd (ASX:NEC), which holds around 60% of Domain’s shares, will play a key role in the outcome of the takeover.