CoStar Group Responds to D.E. Shaw Group Letter
CoStar Group issued the following statement in response to the letter issued by D. E. Shaw Group. "On top of Board change already obtained last year, D.E. Shaw is seeking majority change of CoStar Group's Board of Directors based on arguments that demonstrate a fundamental misunderstanding of our business and push a false narrative that we have not substantially engaged with D.E. Shaw or considered their feedback. The truth is, the Board and management team listened to and responded to D.E. Shaw's requests, including: Refreshing the Board with three new independent directors, two of which were recommended by D.E. Shaw and Third Point, and announcing a new independent Board Chair. Forming a Capital Allocation Committee to support the Board's and management's comprehensive review of the Company's capital structure, capital allocation priorities, and financial targets. Moderating net investment in Homes.com by $300 million in 2026 and $100+ million annually thereafter to achieve break even exiting 2029 while at the same time increasing investment in our commercial product offerings. Accelerating the completion of our $500 million share repurchase program initiated in 2025 and authorizing a new $1.5 billion repurchase program in January 2026. After engaging the top 50 stockholders representing 77% of shares outstanding, implementing a redesigned executive compensation program for 2026, with more rigorous and quantitative goals, enhanced transparency, and a simplified structure..."
