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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.
- Activist investors including Third Point and D.E. Shaw demanded CoStar Group abandon Homes.com and replace the CEO, but CoStar said the strategy needs long-term investment and expects profitability later this decade.
- Critics say shareholder activism often prioritizes near-term returns, with surveys from McKinsey and FCLTGlobal showing roughly half of executives surveyed delay projects to meet quarterly targets.
- CoStar purchased Homes.com in 2021 and relaunched it in 2022 to compete with Zillow, citing decades of double-digit revenue growth, with management emphasizing long-term strategy.
- Analysts warn that if CoStar exits the residential listings market, Zillow could face less competition, amid President Donald Trump’s focus on housing affordability and a $200 billion MBS directive.
- RealClearMarkets argued activists misunderstand CoStar’s long-term strategy and questioned why two hedge funds would oppose competition benefiting homebuyers.
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Watauga Democrat+18 Reposted by 18 other sources
Activist investors pressure CoStar to abandon Homes.com as Trump targets housing costs
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.
·Calhoun, United States
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Total News Sources19
Leaning Left1Leaning Right6Center2Last UpdatedBias Distribution67% Right
Bias Distribution
- 67% of the sources lean Right
67% Right
11%
C 22%
R 67%
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