Redfin Proposes to Buy RentPath
RentPath, which was to be purchased by CoStar before the Federal Trade Commission sued to block the transaction in December, could now be purchased out of bankruptcy by real estate brokerage Redfin Corp. From a story in the Wall Street Journal:
Real-estate brokerage Redfin Corp. has agreed to buy apartment search site operator RentPath Holdings Inc. out of bankruptcy for $608 million, in a deal that would combine operators of leading U.S. property listing websites for purchasing and renting a home.
The all-cash deal announced Friday comes months after an earlier acquisition agreement between RentPath and real-estate data provider CoStar Group Inc. was blocked by federal antitrust regulators. Redfin’s proposed acquisition of RentPath is subject to antitrust approval by the Federal Trade Commission and a bankruptcy judge...
The proposed sale also provides a way for RentPath to exit chapter 11 following the collapse of its proposed tie-up with CoStar. RentPath pulled out of the deal after spending months working with CoStar to try to get the FTC to approve the acquisition.
The FTC in December sued to block the transaction, arguing that CoStar and RentPath had for years been each other’s closest rivals and that a merger of the two companies would eliminate competition that benefits both renters and property managers. CoStar disputed the FTC’s lawsuit.