CoStar Group, the $51bn US-listed real estate data and analytics giant, is coming under fresh pressure from hedge fund activists Third Point and DE Shaw, even as it presses forward with its proposed $2.8bn acquisition of Australian property platform Domain, according to a report by Capital Brief.
As part of a newly reached agreement with the two hedge funds, CoStar will establish a capital allocation committee, chaired by founder and CEO Andy Florance, to evaluate the company’s balance sheet, capital priorities, and international investment strategy. The move follows a broader push by shareholders to enhance capital discipline and unlock long-term value.
The shake-up, disclosed in SEC filings this week, comes as Third Point – led by activist investor Dan Loeb – and DE Shaw sharpen their focus on improving shareholder returns at the real estate intelligence company.
The report cites unnamed sources close to the matter as saying that the internal review is not expected to affect CoStar’s acquisition of Domain, the digital real estate subsidiary of Australia’s Nine Entertainment. The deal, valued at $2.8bn, is seen as a strategic play to deepen CoStar’s footprint in international markets.
