CoStar stands firm on Homes.com amid investor pressure

"The company said that since Third Point and D.E. Shaw's first letter last year, it has conducted extensive engagement with its shareholders including Third Point and that the feedback gained helped inform the meaningful steps it has taken to deliver shareholder value. Some of these actions 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;"

"It also says it is reducing net investment in Homes.com by $300 million in 2026 and at least $100 million annually thereafter; accelerating the completion of its $500 million share repurchase program in 2025 and launching a new $1.5 billion repurchase program in July of 2026. The firm will also be deploying AI initiatives across the organization and investing to enhance its commercial product offerings like its loan origination module and real estate lease benchmarking and approving a redesigned executive compensation program for 2026."

Activist investors claimed that since they first took action last spring, CoStar made almost no progress toward correcting the company's course and concluded the company never intended to fulfill agreed actions. CoStar replied that its board and management are taking decisive action to prioritize profitable growth and increase long-term shareholder value. Actions include appointing John Berisford, Rachel Glaser and Christine McCarthy to the board, replacing Michael Klein, Christopher Nassetta and Laura Kaplan, appointing Louise Sams as independent chair, and forming a Capital Allocation Committee. CoStar reduced Homes.com net investment, accelerated and launched share repurchase programs, will deploy AI, enhance commercial products, and approved a redesigned 2026 executive compensation program.

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