CoStar Group Reiterates Strategic Initiatives to Prioritize Profitable Growth and Increase Long-term Stockholder Value

“Third Point appears intent on spinning a yarn of Board complacency and “quixotic” investment. Their story is completely detached from reality. Following a review process that Third Point and D.E. Shaw suggested with participation from their Board nominees, the Board unanimously recommended a plan involving accelerated profitability for Homes.com, additional investments in our core platforms, incremental capital return, stockholder-aligned executive compensation, and greater investor transparency. Unhappy with the conclusions of the independent Board they helped pick, Third Point, like a child with a board game, wants to throw the pieces off the board.”

I did some digging based on a tip. What I found was Third Point invested in Rocket last year which changes the optics for me a bit. Could there be a bit of game play here? Maybe. Maybe not. But, as I said in my last post, I still wouldn’t bet against Andy Florance.

But in my last episode of Industry Relations, recorded before the CoStar news broke, I asked Jack Miller his thoughts on CoStar and he had a brilliant take.

 

From Jack’s perspective it’s still about product market fit. In my 2026 predictions I said that we were going to see a shift in the strategies of non-Zillow portals. So far Realtor.com has announced their Realtor + app, and I think Homes.com is going to have to think of something that answers Jack’s take.