Compass Just Became the World's Largest Brokerage. Now What?

"Last Friday, Compass, the largest brokerage in the country, acquired Anywhere Real Estate, making it the largest brokerage in the world. Its merger with Anywhere, the second-largest brokerage in the U.S., brings Corcoran, Sotheby's, Coldwell Banker, and Century 21 under Compass's umbrella, which already included Christie's and some prominent local firms, including Stribling & Associates in New York. It's a stunning coup for a company that was launched barely a decade ago and has struggled to turn a profit for years."

"The $1.6 billion, all-stock deal closed unusually quickly - government approvals took just a few months after the initial September announcement - and did not involve the scrutiny typically involved in a merger of this scale. It also proceeded despite the objections of the Justice Department's anti-trust division, which felt that the merger of the country's two largest brokerages merited an investigation."

Compass acquired Anywhere Real Estate in a $1.6 billion all-stock transaction, creating the world's largest residential brokerage and bringing brands such as Corcoran, Sotheby's, Coldwell Banker, Century 21, and Christie's-affiliated firms under one company. The combined firm is estimated to control more than 40 percent of residential sales by dollar volume in New York and San Francisco and about 20 percent nationally. Government approvals completed within months, despite objections from the Justice Department's antitrust division and a December request from senators for closer evaluation of antitrust and civil-rights implications. The speed of approval left limited public information about how the merger will affect buyers, sellers, and brokers.

Read at Curbed