CoStar rebuffs D.E. Shaw, Third Point on Homes.com divestment

"D.E. Shaw and Third Point's attempt to prescribe a break-up, sale or amputation remedy misdiagnoses an imagined patient and smacks of activism malpractice, the press release states. Additionally, CoStar wrote that it feels that D.E. Shaw's call to change even more members of the firm's board of directors is based on arguments that demonstrate a fundamental misunderstanding of CoStar's business and they further a false narrative that CoStar has not engaged with the activist investors or considered their previous feedback."

"According to the release, some of the actions CoStar took in response to D.E. Shaw's feedback include the appointments of John Berisford, Rachel Glaser and Christine McCarthy to the firm's board of directors, replacing Michael Klein, Christopher Nassetta and Laura Kaplan, who all retired from the board; the appointment of Louise Sams as the independent board chair; and forming the Capital Allocation Committee."

"The company also said that its decisions to reduce net investment in Homes.com by $300 million in 2026 and at least $100 million annually thereafter; accelerate the completion of its $500 million share repurchase program in 2025 and launching a new $1.5 billion repurchase program in July of 2026, were also made in response to feedback. CoStar also noted that it made the decision to implement a redesigned executive compensation program for 2026 that includes more rigorous and quantitative goals"

D.E. Shaw and Third Point pushed for a breakup, sale or 'amputation' remedy, which CoStar characterizes as a misdiagnosis and activism malpractice. CoStar contends that activists misunderstand its business and wrongly claim lack of engagement. CoStar lists board changes including appointments of John Berisford, Rachel Glaser and Christine McCarthy; Louise Sams as independent chair; and formation of a Capital Allocation Committee. CoStar reduced planned net investment in Homes.com by $300 million in 2026 and at least $100 million annually thereafter, accelerated a $500 million repurchase into 2025, and launched a $1.5 billion repurchase in July 2026. A redesigned 2026 executive compensation plan now includes more rigorous quantitative goals, greater transparency, and a simplified structure following meetings with top shareholders representing 77% of shares outstanding.

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