After a March 13 Wall Street Journal report that Compass is in “advanced” talks to acquire HomeServices, Gino Blefari, president and CEO of the Berkshire Hathaway-owned mega franchisor, sent out a statement to the HomeServices community categorically denying the report, calling it “misinformation.”
“I want to confirm to you that there are no discussions, negotiations or agreements to sell HomeServices or any of its affiliated companies, and that includes the Berkshire Hathaway HomeServices franchise business,” Blefari wrote. “Moreover, no such sale is being contemplated.” (emphasis original).
Blefari’s statement did not appear to immediately end speculation regarding what would be a foundation-shaking deal, if it were to actually transpire, as thought leaders opined on how the back-and-forth would play out. The Wall Street Journal report claimed a deal could come together “soon,” citing “people familiar with the matter.”
The paper also added a brief update to the story Thursday evening to say that HomeServices “sent out a note saying that no final deal has been reached.”
“I had heard the rumors over the past few months about this, also spoke to several people this week who confirmed it was ‘happening this week or next,’” wrote James Dwiggins, CEO of NextHome, on LinkedIn. “Not much else I can say except if a management team member at one of these companies was starting these rumors, they are going to be getting a knock on the door by the SEC. Pretty sure this would be deemed classic market manipulation.”
Brad Blumberg, a longtime real estate tech leader, also offered thoughts on LinkedIn, noting that Berkshire rarely sells companies and highlighting the possibility that Compass could seek to acquire another Berkshire Hathaway HomeServices franchisor group, or was maybe interested in title and mortgage operations.
“One thing is certain: the local Berkshire Hathaway real estate companies are led by some of the best brokerage operators in the industry. These leaders have built substantial local and regional brands that are top players in most markets where they operate,” Blumberg wrote. “Is this about the executives not having the fire in the belly as the original Berkshire realty founders, most in their 60s and 70s or retired, with Compass still run by its founder?”
On a real estate Facebook group, several agents shared a screenshot of what appeared to be an email from HomeServices Executive Vice President Chris Kelly, who wrote that the company “categorically den(ied) that HomeServices of America has been sold to Compass or that there is any agreement in place to do so,” notably without the language in Blefari’s statement that there were no discussions or negotiations of a deal.
The report and rumors also notably come only days after Rocket Companies officially announced a deal to buy portal Redfin, another major consolidation that promises to shift the industry landscape when (and if) it closes.
Compass had not filed any forms with the SEC at press time regarding the acquisition, as would (likely, depending on the specifics) be required by law.
