CoStar Continues Acquisition Path in wake of RentPath Deal Fallout

Right before the new year, OnlineMarketplaces.com reported on the RentPath-CoStar deal fallout. As part of the break-up, RentPath attempted to collect almost $60 million, arguing that CoStar violated the purchase agreement. 

Back in February of 2020, the two companies agreed to a $585 million deal. As part, CoStar agreed to buy its rival out of bankruptcy but federal regulators sued to stop the sale in November of 2020, stating that the completion of the agreement would put CoStar in a powerful position. 

CoStar fired back saying RentPath looked to undermined the transaction by sabotaging its support of CoStar’s U.S. Federal Trade Commission strategy. It alleged that RentPath also terminated the sale agreement in the middle of the conflict. 

The back and forth isn’t halting business for the US real estate giant, though. The company has also announced that it acquired the URL houses.com to further solidify its commitment to the residential sector. 

The new URL and the platform to accompany it will join CoStar’s suite of consumer-facing real estate websites including Loopnet.com, Cityfeet.com, Showcase.com, Apartments.com, ForRent.com, ApartmentFinder.com, ApartmentHomeLiving.com, Apartmentos.com, Land.com, LandsofAmerica.com, LandWatch.com, and LandandFarm.com. 

The URL purchase comes just after the FTC gave CoStar the OK to acquire residential property portal, Homesnap. 

CoStar Group Founder and CEO Andy Florance said in a statement:

“Adding Homesnap to CoStar Group’s network provides significant complementary value to our existing arsenal of broker and agent-centric tools, directly benefiting the entire industry.

“We share a common goal of strengthening connections that drive the real estate industry forward and are excited that regulatory review was completed so rapidly, allowing us to close this transaction quickly.”