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Friday, 19.04.2024, 23:06
Eesti Meedia keen to buy property classifieds portal City24
The CEO of AS Eesti
Meedia, Sven Nuutmann, confirmed
to LETA/BNS on Friday that Eesti Meedia
and the owner of City24,24 M2 OU,
signed a letter of intent on Thursday aimed at concluding a purchase and sale
agreement concerning the portals.
"Reaching a deal depends on the success of the
negotiations of course. Eesti Meedia
has made an indicative offer and we expect to move forward fast to reach a deal
still before autumn sets in," Nuutmann told BNS, but declined to reveal
the potential price.
Nuutmann said that Eesti
Meedia, which already owns KV.ee, the biggest real estate portal in
Estonia, will observe in the transaction all requirements arising from the law,
including the competition clause. "When the purchase transaction is
carried out, both KV.ee and City24.ee, which have quite different technical
platforms, will go on acting on the market side by side," Nuutmann said.
He added that, by way of comparison, there is only one big
car classifieds portal on the Estonian market, Auto24.ee, and that fact has
never undermined the competition situation on the market.
Ilmar Kompus,
manager of the company that owns City24.ee, said the negotiations are
still in the early stages and it is still too early to speak about a possible
deal. There have been other parties interested in buying City24, Kompus said,
and did not rule out the possibility that negotiations would be started with
those parties as well.
"City24 holds half the market in Estonia and Latvia alike,"
Kompus said, adding that the portal has been doing well in recent years.