Online property firms merge to fight Rightmove

Two online property firms joined forces today to challenge the might of dominant player Rightmove, which has more than 80% of the UK market.

Digital Property Group, owned by Daily Mail and General Trust, and privately owned Zoopla will merge.

DMGT, whose sites include Findaproperty.com and Primelocation.com, will have a 55% shareholding in a joint venture while Zoopla will hold the remainder.

"This merger will create a genuine opportunity to challenge the dominant market leader," said DMGT chief executive Martin Morgan.

DMGT, a minority owner of the Evening Standard, and Zoopla have notified the Office of Fair Trading of the merger but analysts said there should be no regulatory problems.