US Edition
Published • loading... • Updated
Activist investors pressure CoStar to abandon Homes.com as Trump targets housing costs
Activist hedge funds want CoStar to prioritize short-term profits by exiting Homes.com and replacing its CEO, while CoStar plans long-term growth with the platform.
- Third Point and D.E. Shaw demanded CoStar abandon Homes.com and replace its CEO, but CoStar said the platform requires long-term investment and will become profitable later this decade.
- By design, activists criticized CoStar's timeline for Homes.com, which it bought for $156 million in 2021 and relaunched in 2022 to compete with Zillow, citing short-term return pressures.
- Homes.com routes leads directly to listing agents, while Zillow sends inquiries to paid 'Premier Agents' or collects referral fees up to 40%, showing distinct monetization models.
- Analysts warn that an exit would reduce competition, leaving Zillow with less rivalry, while CoStar cited 59 consecutive quarters of double-digit revenue growth in its defence.
- President Donald Trump has foregrounded housing affordability, highlighting declining mortgage costs and banning large institutional buyers while directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities.
Insights by Ground AI
15 Articles
15 Articles
NE Iowa Publishing+14 Reposted by 14 other sources
Activist investors pressure CoStar to abandon Homes.com as Trump targets housing costs
(The Center Square) – A fight between hedge funds and CoStar Group over the company’s Homes.com investment could affect competition in the housing market as the Trump administration pushes policies aimed at lowering housing costs.
·Oelwein, United States
Read Full ArticleCoverage Details
Total News Sources15
Leaning Left0Leaning Right6Center2Last UpdatedBias Distribution75% Right
Bias Distribution
- 75% of the sources lean Right
75% Right
C 25%
R 75%
Factuality
To view factuality data please Upgrade to Premium
