CoStar CEO Lays Out Plans for New Portal, Disses Zillow and Hints at Acquisitions

January 27, 2021
Share this Post: 

CoStar's November acquisition of Homesnap signalled the commercial real estate giant's intention to move into the residential market and then its CEO Andy Florance's punchy interview with Brad Inman a few days later left nobody in any doubt that the publicly traded firm was setting Zillow firmly in its sights. However, during a session of US industry publication inman.com's Connect conference for realtors yesterday Florance used another interview with Brad Inman to categorically state that CoStar "is not Zillow's competitor".

Far from being a white flag, the comment was in fact something of a provocative diss referring to the way that Florance sees CoStar working with agents and Zillow as competing directly against them. Referring to Zillow's business model as the "Uberization of residential real estate", the CoStar CEO and Founder used the interview to draw parallels to Zillow CEO Rich Barton's ex-company Expedia and the way that it rendered many travel agents obsolete as well as to defend his own company's pricing record which he described as "in-line with inflation for 20 years".

During the interview Florance also revealed that CoStar would be looking to "strategically acquire companies that will help us grow the business" in the residential sector and that he had been up late the previous night working on an acquisition his company has in the works. A recent report by Bloomberg claimed that CoStar was one of two parties competing for the significant buyout of US housing data company CoreLogic which, were it to go the way of CoStar, would give the company a massive step up in its data game.

Another acquisition which may be significant for CoStar is the company's recently announced purchase of the domain houses.com which may well become the home for the Washington-based firm's consumer-facing residential property portal which Florance said would be designed with both agents and home-hunters in mind. Florance reiterated CoStar's belief, inherent in the company name, that it wants to strengthen the relationship between end-users and agents; a relationship which the company is apparently “not trying to own and monetize".

With this new portal potentially set to be launched in a year's time, the competition in the world of American residential real estate marketing may be close to becoming more of a two-horse race. The two companies already own and operate a surprising number of portal domains between them, and the number is not likely to stop growing soon.

January 27, 2021
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Spanish Proptech Firms
Housfy Gets Funding and Casavo Expands as Spanish PropTech Market Heats Up

The Spanish PropTech market is heating up with two prominent companies in the market announcing positive news this week. Online...

Read More
Leboncoin Op 1
LeBonCoin Launches New Offering to Help Agents Win Sales Instructions

The French classifieds market leader LeBonCoin has today announced the launch of a new package for real estate agents. The...

Read More
Domain Data
Domain Acquires Data Services Provider Insight Data Solutions

Australian portal company Domain has today announced that it has agreed to acquire data services provider Insight Data Solutions (IDS)....

Read More
Carousell Ceo 1
Southeast Asian Classifieds Operator Carousell Bags $100M Round to Become Region's Latest Unicorn

The Singapore based classifieds operating company Carousell has announced that it has secured $100 million in financing. The latest investment...

Read More

Popular News