U.S.-based fintech firm Rocket Companies (RKT) has positioned itself as a stronger competitor to Zillow (Z) in the online real estate market with its latest acquisition of Redfin Corp. (RDFN). The deal links Redfin’s nearly 50 million monthly visitors to Rocket’s mortgage offerings, creating a seamless home-buying experience. Following the announcement, RDFN stock gained 68%, while RKT declined by over 15%. Zillow’s stock also declined more than 4%.
Rocket is best known for its mortgage lending services through Rocket Mortgage. Meanwhile, Redfin and Zillow operate as real estate marketplaces, allowing users to search for homes, compare prices, and connect with real estate agents.
Details of the Acquisition
Rocket’s $12.50 per share offer represents a nearly 115% premium over Redfin’s closing price on Friday. Rocket Companies expects the deal to close later in 2025, subject to regulatory approvals. The fintech company projects over $200 million in run-rate synergies by 2027.
Rocket-Redfin Acquisition Heats Up Housing Market Competition
With this acquisition, Rocket aims to use technology and AI to connect homebuyers with its financing services while creating a seamless, all-in-one platform. Mike DelPrete, a well-known real estate technology strategist, stated that the concept of a complete, all-in-one real estate platform has long been a goal for companies in the industry.
Interestingly, Zillow has a similar vision. In 2022, the real estate tech firm announced plans for a “housing super app,” enabling users to manage the entire home-buying journey in one place. Since then, it has expanded features, streamlining connections with agents, home tours, and mortgage financing across 40+ markets.
Meanwhile, Zillow responded to Rocket’s acquisition of Redfin, calling it “another signal of a shared push toward an improved consumer experience.” In February, Zillow partnered with Redfin to become the exclusive provider of multifamily rental listings for Redfin and its affiliated sites. Zillow confirmed that this partnership will continue despite the acquisition.
Is Rocket Stock a Good Buy?
According to TipRanks consensus, RKT stock has a Hold rating, based 10 Holds and three Sells assigned in the last three months. The Rocket share price target of $13.46 is similar to the current trading level.
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