Seattle-based Redfin acquired for $1.75 billion by Rockets Cos.
Mar 10, 2025, 8:05 AM | Updated: 8:28 am
A Redfin real estate yard sign is pictured in front of a house. (Photo by Stephen Brashear/Getty Images for Redfin)
(Photo by Stephen Brashear/Getty Images for Redfin)
Detroit-based Rocket Cos. is making a major move in the real estate industry with a deal acquiring Seattle-based Redfin Corp. for $1.75 billion in an all-stock transaction.
The financial technology firm will pay $12.50 per share for Redfin. The Seattle Times reports this represents a 63% premium over the company’s 30-day volume-weighted average stock price. The acquisition was confirmed Monday following an earlier report by Bloomberg News.
Shares of Redfin surged 70% to $9.92 on Monday, according to Barron’s. Meanwhile, Rocket’s stock dropped about 14% following the announcement. The deal is expected to close by the third quarter.
Related from MyNorthwest: ‘Reckless urban planning:’ Seattle agencies clash over affordable housing proposal
Redfin acquisition is about consumer insights, AI
Redfin CEO Glenn Kelman is expected to remain at the helm, reporting to Rocket CEO Varun Krishna. Redfin, headquartered in Seattle, operates a home search platform with more than one million for-sale and rental listings and a brokerage with over 2,200 agents nationwide.
Krishna emphasized integrating Redfin’s data models with Rocket’s platform will enhance consumer insights.
“Models from Redfin can augment models from Rocket and help us understand how and when a consumer is in a good place where their intent and their seriousness to buy a home increases,” he explained to Bloomberg.
Rocket has been investing heavily in artificial intelligence (AI) as part of its long-term strategy to drive growth, especially after a downturn in mortgage origination.
“This is really about accelerating our purchase and our AI strategy,” Krishna said. “It allows us to integrate home search with the Rocket platform, which obviously covers things like financing, title, servicing, closing.”
A buyer’s market?
The acquisition comes as the housing market appears to be shifting to a buyer’s market.
Krishna pointed out that more homes are selling at or below listing price, and inventory is staying on the market longer, signaling a shift that Rocket thinks it can capitalize on.
Related from MyNorthwest: Washington Supreme Court hands landlords major victory after CARES Act challenge
Follow @http://twitter.com/Mynorthwest
-
Tune in to Seattle Red AM 770 weekdays at 3-7pm to The Jason Rantz Show.
