CoStar Group Refutes D.E. Shaw's Misleading Claims
CoStar Group issued the following statement: "Contrary to D. E. Shaw's misleading claims, CoStar Group has never reported Homes.com results as a separate segment. CoStar Group changed our reporting segments from geography-based to product portfolio-based to align with how we run our business. Our new segment disclosure actually offers more transparency by providing audited revenue, EBITDA, Adjusted EBITDA and margin disclosures for both the Residential and Commercial segments in our recent 10-K, as well as continuing to provide disaggregated revenue disclosures. Investors should expect similar Homes.com disclosures on our earnings calls that CoStar Group has always provided to stockholders. If D. E. Shaw is worried about transparency, it should start with itself. D.E. Shaw has never disclosed its economic exposure to CoStar Group, or even if it is a net long investor. Public filings suggest D. E. Shaw owns just 0.22% of CoStar Group's common stock, but almost 4x that value in CoStar Group competitors1 who would directly benefit from D. E. Shaw's push for us to abandon Homes.com and eliminate the fastest growing residential real estate platform in the industry. CoStar Group stockholders should ask if D. E. Shaw's real agenda is to unlock value through its investment in CoStar Group or in our competitors at the expense of CoStar Group stockholders. CoStar Group has also added Clare Locke, LLP, a leading litigation boutique representing clients in complex defamation matters and high-profile reputational attacks, to bolster its team of advisors, including Goldman Sachs & Co. LLC, as financial advisor, Latham & Watkins LLP as legal counsel, and Joele Frank, strategic communications advisor."
