The Domain Holdings Australia Ltd (ASX: DHG) share price is slipping today.
Shares in the All Ordinaries Index (ASX: XAO) property listings company closed on Friday trading for $4.32. In morning trade on Monday, shares are changing hands for $4.30 apiece, down 0.2% at the time of writing.
For some context, the All Ords is down 1.3% at this same time.
What's been happening with the Domain share price?
As you're likely aware, the Domain share price has been on a tear since February.
Indeed, at $4.30 a share, the stock is up 70% so far in 2025.
Domain first got a sizeable boost when the company reported its half-year half-year results on 13 February. Highlights included a 7.4% year-on-year increase in revenue to $217.2 million. And net profit after tax (NPAT) was up 28.3% to $33.1 million.
But the Domain share price really got moving on 21 February, closing up 40.1% on the day.
This followed news of a takeover proposal the property listing company received from CoStar Group, Inc. (NASDAQ: CSGP). CoStar made an unsolicited, non-binding indicative offer of $4.20 cash per share, 35% above Domain's closing price on the prior trading day.
While that's well above the recent trading price, it's still well below the near $6 a share Domain was trading for in late 2021.
CoStar – a US$32 billion provider of online real estate marketplaces – also told Domain that it had acquired 16.9% of its shares for $4.20 apiece.
Nine Entertainment Co. Holdings Ltd (ASX: NEC) has around a 60% holding in Domain.
What's going on with CoStar's Domain takeover offer?
In an update this morning that's yet to boost the Domain share price today, the company said that it has entered into an exclusivity and process deed with CoStar for a cash consideration of $4.43.
CoStar lobbed the improved bid on 27 February.
Domain's directors confirmed that they intend to unanimously recommend Domain shareholders vote in favour of the offer.
Domain also said that CoStar will be granted access to a virtual data room to conduct due diligence, with an exclusivity period of four weeks, which may be extended by an additional two weeks.
Management stressed that CoStar's proposal remains subject to a number of conditions.
"There is no guarantee that a binding agreement will be reached and therefore no certainty that the CoStar Proposal will result in a transaction," they stated.
Should the takeover not go through, we could see a sizeable retrace in the Domain share price.
