CoStar Group Inc. is facing renewed shareholder activism following a letter from Daniel S. Loeb’s Third Point LLC to the company’s Board of Directors. Third Point, which manages approximately $24 billion in assets, has called for significant changes to CoStar’s governance and strategy after what it describes as years of underperformance and eroded shareholder trust. The letter urges the immediate replacement of a majority of the board with more qualified directors, tighter alignment of management compensation with total shareholder return, and a refocus on CoStar’s core commercial real estate $(CRE)$ business. Third Point also recommends exploring strategic alternatives for the company’s Homes.com and related residential real estate (RRE) businesses, or eliminating them if no viable options exist. The activist investor expressed disappointment over what it perceives as a lack of progress since a prior agreement with CoStar, which included appointing independent directors and forming a Capital Allocation Committee. Third Point continues to engage with other shareholders, emphasizing the need for swift, decisive action to restore value and credibility.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. CoStar Group Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20260127616511) on January 27, 2026, and is solely responsible for the information contained therein.
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