The Real Deal New York

Settlement talks between CoStar and Xceligent break down

Parties were days away from agreement: report
December 12, 2017 05:05PM

CoStar’s CEO Andrew Florance and Xceligent’s former CEO Doug Curry

Last week it looked like CoStar and Xceligent’s high-stakes legal battle was heading for a settlement. But now talks have broken down.

CoStar wanted Xceligent to delete material on its database as part of a settlement deal, the Wall Street Journal reported without citing details. Xceligent balked, meaning the two sides are bound to head back to court.

CoStar sued Xceligent last December for alleged copyright infringement, claiming the rival commercial property database stole its images. Xceligent hit back in June, filing an antitrust lawsuit against CoStar. Doug Curry, Xceligent’s founder and CEO, led the legal crusade, but in October the company’s owner, Daily Mail and General Trust, fired him amid disappointing revenue growth.

In late November, DMGT wrote its subsidiary’s carrying value down to zero amid lower-than-expected revenues from its push into New York City. The company previously said it spent £14 million ($19 million) in legal fees over the last 12 months, primarily due to Xceligent.

The Real Deal recently broke down the rise of the commercial real estate data business — which is an increasing focus for the industry, and now another way for firms to measure their value.

WeWork, for instance, uses its data trove to help justify a $20 billion valuation. Experts said that real estate’s data revolution is still in its infancy, and that there will likely be more legal conflicts in the future. [WSJ] — Konrad Putzier