A 55 per cent stake in online site CarsGuide will be sold by News Corp Australia as part of a merger agreement signed this week.
CarsGuides will merge with Cox Automotive, a USA-based car transactions business with interests in Australia. The deal is subject to a capital raise, regulatory and shareholder approval, and is expected to be completed in Q4.
It is the second online relationship News Corp has terminated in recent weeks, switching its jobs site partnership from CareerOne to Seek.
CarsGuide was formed in 2011 when News Corp collaborated with a network of Australia’s largest automotive groups to build a digital market place.
A 2014 relaunch almost doubled the CarsGuide monthly audience to reach one million unique visitors.
CarsGuide chief executive Lauren Williams said the merger was “recognition of the success CarsGuide has achieved in the automotive classified market over the past few years”.
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