Redfin finalizes $608M RentPath acquisition

Deal comes after CoStar’s aborted takeover of RentPath last year

National /
Apr.April 06, 2021 09:36 AM
Redfin CEO Glenn Kelman and RentPath CEO Dhiren Fonseca (Redfin, Rentpath, iStock)

Redfin CEO Glenn Kelman and RentPath CEO Dhiren Fonseca (Redfin, Rentpath, iStock)

It’s official: Redfin has finalized its purchase of RentPath for $608 million in cash, expanding the brokerage’s presence in the rental market.

The acquisition gives Redfin control of RentPath’s subsidiaries, including Apartment Guide, Rentals.com and Rents.com, Inman reported. Redfin CEO Glenn Kelman said that listings from those platforms will appear on the brokerage’s website by 2022, according to the report. The deal closed in 42 days rather than the anticipated 90.

“[W]e can’t wait to tell RentPath’s property-management customers, who were once uncertain about the company’s future, about our big plans to double our audience of people seeking a home to rent,” Kelman said, according to Inman.

The deal will expand Redfin’s audience significantly. Its platform had 39 million average monthly visitors in 2020, while RentPath said it had 16 million monthly viewers combined.

The deal ends an otherwise tumultuous 14 months for RentPath. The company filed for Chapter 11 bankruptcy in late February 2020. That same month, CoStar founder and CEO Andrew Florance announced his firm’s plan to purchase RentPath for $587.5 million. But the deal drew scrutiny from the Federal Trade Commission, which sued to block it late last year on the grounds of unfair competition.

In December, RentPath pulled out of the agreement, prompting a standoff between the two companies over a $60 million break-up fee. In March, a Delaware bankruptcy court ruled that CoStar would have to pay $52 million of that fee.

[Inman] — Keith Larsen


Related Articles

arrow_forward_ios
Ai Weiwei with 708 New Forge Hallow (Getty, Compass)
Ai Weiwei–designed home sells for $5M
Ai Weiwei–designed home sells for $5M
Montauk Point (Getty)
More than $8B worth of Hamptons homes sold during pandemic
More than $8B worth of Hamptons homes sold during pandemic
Westchester continues to see strong sales despite low inventory (Getty)
Westchester home sales stayed strong in Q1
Westchester home sales stayed strong in Q1
New Jersey Gov. Phil Murphy (Getty)
NJ order tapping security deposits to pay rent is back in court
NJ order tapping security deposits to pay rent is back in court
A Jersey City development meant to update sewer infrastructure, build climate resilience and create a two-acre park has completed phase one of environmental cleanup. (Aerial via Ennead Architects)
Argent Ventures, H&R advance 18-acre Jersey City development
Argent Ventures, H&R advance 18-acre Jersey City development
90 Jule Pond Drive (Sotheby’s International Realty)
Hamptons estate asking $145M under contract, may set record
Hamptons estate asking $145M under contract, may set record
90 Jule Pond Drive is on t he market for $145 million (Sotheby’s International Realty)
$145M Hamptons estate languishes on market amid surging demand
$145M Hamptons estate languishes on market amid surging demand
Luba Marks and 1210 Meadow Lane (Wikipedia, Elliman, iStock)
Luba Marks’ Southampton home, asking $37M, in contract
Luba Marks’ Southampton home, asking $37M, in contract
arrow_forward_ios

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

Loading...