Redfin has been acquired in an all-stock transaction valued its real estate listing platform at $1.75 billion.
The acquisition company is a rocket company based in Detroit, Michigan, a financial and real estate company that owns a variety of brands, including Rocket Mortgage, Rocket Money (formerly Trueville), and Rocket Loans.
The combined entities essentially pool the respective strengths of both companies in their home search services and fundraising.
“The approach to rocket and redfin’s lending and intermediary services was two halves of one vision to make the entire home buying process magical,” Redfin CEO Glenkelman said in a statement. “We check our clients’ phones to find out what they can afford, see which houses are right for her, schedule a tour with local expert Redfin agents, get prequalified for the loan, and all in just a few minutes.”
Founded in Seattle in 2004, Redfin operates a residential real estate brokerage platform for the US and Canadian markets. The self-proclaimed “Amazon of Real Estate” was published in 2017, and its stocks were usually traded flat for around $20 over a few years. But like many tech companies, Redfin has surged during the pandemic, with stocks reaching their all-time highs in early 2021, then plunging below $10 for the majority of the last three years.
Redfin stock has slipped more than 30% in the past few weeks since earnings for the fourth quarter 2024 missed analysts’ expectations and current quarter forecasts were considered weak.
The rocket company was released in 2020 and today it has a market capitalization of $31 billion. The proposed bid of $12.50 per share represents a 63% premium over Redfin’s volume weighted average price (VWAP) for the month ending March 7, 2025. The offer will exchange 0.7926 shares of Rocket Companies Class A shares for each share of Redfin Common Stock that owns each share of Redfin Common Stock.
Both boards have already approved the transaction, but Redfin’s shareholders have requested the contract from Lababar Stamp. He says he expects this to happen in the third quarter of 2025.
This article was updated to clarify that Redfin will remain a public company as a member of Rocket Companies.
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