news/CSGP/2023.02.21/CoStar ends talks to buy Move Inc, posts weak profit forecast.txt

Feb 21 (Reuters) - CoStar Group said on Tuesday
it was no longer in talks to buy Realtor.com owner Move Inc from
News Corp and forecast disappointing first-quarter
revenue that sent its shares down 15% in extended trading.Reuters reported last month that News Corp was exploring a
sale of Move Inc to CoStar, which provides online marketplaces
for commercial and residential real estate and apartment
rentals, among others.Reports of the deal talks emerged in late January, as Rupert
Murdoch withdrew his proposal to unite Fox Corp with News Corp.
The potential $3 billion sale of Move was greeted with
enthusiasm by investors, who viewed News Corp's digital real
estate assets as undervalued.News Corp issued a statement on Tuesday saying it would keep
looking for ways to "optimize the value" of its digital real
estate services segment, which also includes the REA Group in
Australia.It has been a tough time for the housing market, which
witnessed a boom during the pandemic, as inflation-wary people
are spending less on real estate.Sales of existing U.S. homes dropped to the lowest level in
more than 12 years in January, though the pace of decline
slowed.Apartments.com owner CoStar said it expected revenue between
$575 million and $580 million for the first quarter. That
compared with analysts' average estimate of $585.62 million,
according to Refinitiv data.Excluding certain items, CoStar expects full-year net income
of $1.06 to $1.09 per diluted share, compared with the average
analyst estimate of $1.47.Stephens analyst John Campbell said CoStar's profit forecast
was the main reason the company's stock was down so much.On an adjusted basis, CoStar earned 38 cents per share in
the fourth quarter, compared with analysts' average estimate of
36 cents. It posted revenue of $573 million, just below the
average analysts' estimate of $576 million.
(Reporting by Tiyashi Datta in Bengaluru, Dawn Chmielewski in
Los Angeles; Editing by Shinjini Ganguli and Bradley Perrett)