An Article Summarized by TechCrunch
Rocket Companies is acquiring Redfin in an all-stock transaction valued at $1.75 billion. The deal will merge Rocket’s strengths in financing with Redfin’s real estate search services, aiming to streamline the home-buying process.
Rocket, a Detroit-based holding firm that owns Rocket Mortgage and Rocket Money, will exchange 0.7926 shares of its Class A stock for each Redfin share. This offer values Redfin at $12.50 per share—a 63% premium over its recent average price. Rocket shareholders will own 95% of the combined company, while Redfin shareholders will hold 5%.
Redfin, founded in Seattle in 2004, saw its stock surge during the pandemic but has struggled in recent years. Its shares had fallen over 30% recently after weak Q4 earnings.
The acquisition, already approved by both companies’ boards, still requires Redfin shareholder approval, expected in Q3 2025. Redfin CEO Glenn Kelman will stay on, reporting to Rocket CEO Varun Krishna. Redfin will continue operating as a public company under Rocket’s umbrella.
For the full article: https://techcrunch.com/2025/03/10/rocket-companies-to-acquire-redfin-for-1-75b/
