Redfin Agrees to Acquire RentPath for $608M
February 22, 2021
Redfin Corp. has announced it is purchasing apartment search site RentPath Holdings, Inc., in a move that will combine the sites for those looking to purchase or rent a home. The deal brings more than 20,000 listings for apartment buildings under Redfin's umbrella. Redfin will buy RentPath, which filed for bankruptcy last February, for a reported $608 million in an all-cash deal.
In December 2020, the Federal Trade Commission sued to block a transaction between RentPath and CoStar Group Inc. due to antitrust allegations. RentPath and CoStar had been close rivals, and the FTC argued that a merger would eliminate competition that would benefit renters and property managers. As the deal fell apart, RentPath and CoStar filed lawsuits against one another.
Redfin’s acquisition of RentPath needs to be approved by the FTC and a bankruptcy judge before it can be finalized.
RentPath owns property sites like ApartmentGuide.com, Rent.com, and Rentals.com. Its sites attract an average of about 16 million monthly visitors. The deal would allow RentPath to exit Chapter 11.
Glenn Kelman, Redfin’s CEO, says that about 20% of Redfin’s monthly visitors are also looking for homes to rent. “RentPath has more than 20,000 apartment buildings on its rental websites and grew its traffic more than 25% last year,” Kelman says. “We can almost double that audience, as one in five of Redfin.com’s 40-plus million monthly visitors also wants to see homes for rent. Together with RentPath, we can create an online destination for every North American to find a home.”
Redfin and “Redfin Agrees to Buy RentPath for $608 Million After CoStar Deal Collapsed,” The Wall Street Journal (Feb. 19, 2021) [Log-in required.]
Updated: June 23, 2021