"We thought then, as we do now, that the Company's anemic performance can be ascribed entirely to the misallocation of billions of dollars into Homes.com, overseen by a feckless board of directors that has failed to protect shareholders from Mr. Florance's quixotic quest while rewarding him with exorbitant pay packages, Third Point wrote in its letter. Like an elementary school child who wins a prize even for finishing last, Mr. Florance's bonuses are perhaps the costliest Participation Award' our firm has witnessed."
"Over the past year, CoStar Group has conducted extensive engagement with stockholders to inform our updated strategic vision and capital allocation priorities which have been unanimously approved by the board and Capital Allocation Committee including members nominated by Third Point and D.E. Shaw. We enter 2026 with considerable momentum and a clear plan to continue building our core platforms while scaling Homes.com, which is a critical component to our comprehensive digital real estate platform and next chapter of profitable growth."
"Third Point also wrote that CoStar must quickly replace the majority of the board with more qualified directors, refocus on the firm's core commercial real estate business and that the reconstituted board needs to consider strategic alternatives for Homes.com and CoStar's other residential real estate businesses. Where such alternatives do not exist, it should promptly eliminate the losses which have burdened consolidated EBITDA, the letter states."
Third Point says CoStar's weak performance stems from billions invested in Homes.com under a feckless board that failed to protect shareholders and rewarded CEO Mr. Florance with excessive pay, calling those bonuses a costly 'Participation Award.' CoStar says it engaged with stockholders, updated its strategic vision and capital allocation priorities, and received unanimous board approval including nominees from Third Point and D.E. Shaw. CoStar plans to scale Homes.com as a core part of its digital real estate platform. Third Point urges board renewal, refocus on commercial real estate, consideration of strategic alternatives for Homes.com, and elimination of losses burdening consolidated EBITDA. Industry speculation suggests Homes.com could be sold.
Read at www.housingwire.com
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