US EditionExclusive: Loeb's Third Point Plans to Take Aim at CoStar in New Activist Campaign
Third Point seeks to cut CEO pay, shut down residential units, and refocus CoStar on commercial real estate after a 27% stock drop over five years, sources said.
- On Jan 27, Third Point launched its first activist campaign in three years to force changes at CoStar Group, preparing to nominate several directors to CoStar’s eight-person board after a standstill agreement expired.
- Daniel Loeb says a majority of directors should be replaced to cut costs, including CEO Andy Florance’s pay, and alleges the $30 billion company misallocated billions into residential expansion, urging focus on CoStar Suite and sale of Homes.com.
- CoStar disclosed a $28 billion market capitalization and a $1.5 billion share repurchase plan as Third Point and D.E. Shaw directors joined a new four-person capital allocation committee.
- Third Point, as one of CoStar’s 15 largest investors, criticizes CEO Andy Florance’s bonuses but says it will continue engaging with the company, which refutes Loeb’s claims.
- Given Loeb's track record, the campaign could force director turnover, cuts to CEO compensation and strategic shifts at the $28 billion CoStar Group.
12 Articles
12 Articles
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The NewsDan Loeb’s Third Point last mounted a proxy fight 10 years ago, delighting shareholders with his biting letters and scorched-earth attacks on management. Now, the billionaire activist investor is ready to mount another campaign, at a real estate giant he says has badly lost its way.Loeb alleges that the “anemic performance” at CoStar Group, the $30 billion company behind Homes.com and a suite of commercial real estate products, “can be a…
CoStar’s Strategy Under Fire From Activist Investor
Activist investor Dan Loeb has launched a scathing critique of CoStar Group’s strategy, raising concerns about its investment plans, particularly in Australia, where it owns the Domain real estate portal. CoStar, an American real estate giant, acquired Domain last year for $3 billion with ambitious plans to challenge the dominant REA Group. CoStar Group is a provider of information, analytics, and online marketplaces for the commercial real esta…
Hedge Fund Third Point Calls for New CoStar Board and Exit From RRE
Billionaire investor Daniel Loeb’s hedge fund Third Point has launched a proxy fight against CoStar Group, nominating multiple directors to the company’s board and demanding the real estate giant exit its residential business entirely. In a letter released this morning, Third Point announced it would seek to replace a majority of CoStar’s eight-person board, marking… The post Hedge Fund Third Point Calls for New CoStar Board and Exit From Reside…
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