Realogy CEO says Covid-19 “eviscerated” value of Amazon partnership

Installing smart-home products “didn’t make sense” during pandemic

TRD NATIONAL /
May.May 07, 2020 12:10 PM
Realogy CEO Ryan Schneider and Amazon CEO Jeff Bezos (Credit: Bezos via Paul Morigi/Getty Images for Amazon)

Realogy CEO Ryan Schneider and Amazon CEO Jeff Bezos (Credit: Bezos via Paul Morigi/Getty Images for Amazon)

Realogy’s much-lauded partnership with Amazon is the latest victim of the coronavirus.

The brokerage conglomerate on Thursday announced that it suspended the partnership, dubbed TurnKey. CEO Ryan Schneider said during the company’s first-quarter earnings call that Covid-19 and the need for social distancing “eviscerated” the value of partnership, which offered Realogy buyers up to $5,000 in Amazon smart-home products, as well as deep cleaning services and furniture assembly.

“We and Amazon had a decision point on the next phase in April. In a Covid world, bluntly, it didn’t make sense to continue that pilot,” he said.

When TurnKey was first announced last year, Realogy touted the partnership as an innovation that would “hopefully let people who follow our equity see the future potential of our company.” Initially, Realogy’s stock soared 19 percent before dropping, as analysts said even the blockbuster deal was not a panacea for a company that had struggled with agent retention and debt.

The program was available in 15 markets across the U.S., including Los Angeles, Chicago, Orlando and Tampa.
During the first quarter of 2020, Realogy reported a net loss of $462 million, compared to a net loss of $99 million in 2019.

Revenue rose 6 percent to $1.1 billion, reflecting strong sales volume before the pandemic struck.

As of midday, Realogy stock was trading around $4.50 per share, up from Wednesday’s closing price of $3.70 per share. Both figures are lower than $8.46 per share a year ago.


Related Articles

arrow_forward_ios
67-25 Otto Road and Silex CEO Wes Sights (Google Maps, iStock)

The $112M warehouse transaction that wasn’t

The $112M warehouse transaction that wasn’t
Durst Organization chairman Douglas Durst and Amazon CEO Jeff Bezos with 1133 Sixth Avenue (Getty, Google Maps)

Another blow to Amazon in court battle with Durst Organization

Another blow to Amazon in court battle with Durst Organization
Compass CEO Robert Reffkin and Realogy CEO Ryan Schneider (Getty, iStock)

Realogy drops non-compete suit against Compass

Realogy drops non-compete suit against Compass
Realogy CEO Ryan Schneider 

Realogy upsizes debt offering to $550M

Realogy upsizes debt offering to $550M
 Jeff Bezos and 1055 Bronx River Ave (Getty, Google Maps)

Amazon takes over Bronx warehouse once home to rival Jet.com

Amazon takes over Bronx warehouse once home to rival Jet.com
Compass CEO Robert Reffkin and Realogy CEO Ryan Schneider (Getty and iStock)

Judge says Realogy’s suit against Compass can stand

Judge says Realogy’s suit against Compass can stand
Former housing czar takes swipe at de Blasio

Former housing czar takes swipe at de Blasio

Former housing czar takes swipe at de Blasio
Vector Group president and CEO Howard Lorber (Getty, iStock)

Howard Lorber’s comp is too damn high: Investors

Howard Lorber’s comp is too damn high: Investors
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...