CoStar Group Accuses D.E. Shaw of Conflict Over 0.22% Stake and Homes.com Reporting
CoStar Group accused D.E. Shaw of holding just a 0.22% stake in CoStar while owning almost four times that value in rival platforms, alleging the activist investor seeks to derail Homes.com. The publisher merged Homes.com bookings with Apartments.com and hired Clare Locke LLP to defend its residential reporting changes.
1. CoStar's Conflict Accusation
CoStar alleged D.E. Shaw holds just a 0.22% position in CoStar while owning nearly four times that value in competing platforms, suggesting the hedge fund is undermining Homes.com to drive value toward its other real estate investments.
2. D.E. Shaw's Competitor Positions
Public filings show D.E. Shaw holds significant stakes in Zillow, Opendoor Technologies, Anywhere Real Estate and Rocket Companies, giving these rivals a potential windfall if Homes.com underperforms under CoStar's revised reporting.
3. Reporting Structure Changes
CoStar combined Homes.com net new bookings with Apartments.com results, a move D.E. Shaw criticized for reducing visibility into Homes.com’s performance following a 9% share price drop that erased roughly $2 billion in market value.
4. Legal and Strategic Response
CoStar engaged Clare Locke LLP to defend its reporting changes and signal a tougher stance in its long-standing dispute with D.E. Shaw and Third Point, whose previous support agreements expired earlier this year.