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In the wake of CEO Antony Catalano's shocking resignation on Monday, Domain's share price has taken a tumble, after speculation grows that there is more to his sudden departure than the “family" reasons he first offered up.
According to News Corp, Domain's share price fell by 57c, or 17.2 per cent, to $2.75 overnight, wiping $420 million from the company's balance sheet.
News Corp also reported that Fairfax, which owns 60 per cent of Domain, ended Monday's session “down almost 10 per cent, at 65c, removing a further $150 [million] in value from the publisher."
News Corp further said that without a firm succession placed at the time of Mr Catalano's departure, Domain chairman Nick Falloon's "family first" reason has raised some questions.
It said that speculation is rife among major shareholders that there are other reasons behind the resignation, in particular that he had a prickly relationship with Mr Falloon. But it added that Domain and Fairfax insiders are sticking to the company line and downplaying that the exit is for any other than family reasons.
It is widely understood that former REA Group boss Greg Ellis has been identified as a possible replacement for Mr Catalano.
News Corp said that Mr Ellis, who runs private equity firm Hellman & Friedman-controlled German internet portal Scout24, is an independent non-executive director of Domain.
REB reported Mr Catalano's sudden exit on Monday, not even three months after the property portal listed on the ASX.
In a statement, Antony Catalano cited family reasons for the exit, as reported by the ABC.
“When I rejoined Fairfax in November 2013, I made a commitment to my young family that I could be there for them and do the job," Mr Catalano said.
“It has become clear to me that doing the job of a listed company CEO the way it needs to be done means that I am not meeting that family commitment."
The ABC also reported that Mr Catalano has eight children.
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