RentPath drops acquisition deal with CoStar after FTC antitrust lawsuit – TechCrunch

RentpathOwners of property listing sites, including Rent.com and Apartment Guide, said today It has canceled its agreement Acquired by Costar group The Federal Trade Commission sued to block the sale.

CoStar, a commercial real estate data and analytics provider that also operates listing sites such as Apartments.com and ApartmentFinder.com, In February, agreed to buy Rentpath for $ 588 million. All-cash deal followed Rentpath It will file for Chapter 11 bankruptcy protection. Rentpath had already hired financial advisors to restructure more than $ 650 million in debt, Reported to the Wall Street Journal.

But earlier this month, the Federal Trade Commission authorized a no-confidence motion in federal court to block the takeover. Daniel Francis, Deputy Director of the FTC Competition Bureau, Said in a statement “The acquisition will eliminate price and quality competition, which benefits both renters and property managers,” as Costar and Rentpath’s rivalry placed ad rates on its platform, including some of the most popular listing sites, as follows.

Rentpath said in its announcement today that the Chapter 11 plan has lenders’ support, with alternative asset management firms having “a strong track record of successfully investing in businesses under similar circumstances.”

FTC lawsuit and decision to withdraw Rentpath from acquisition agreement comes More countries around the world Techniques are breaking down on consolidation. While the United States has left behind a case of antitrust action against other governments, which is slowly changing, Amazon, Google and Facebook are coming under more legislative scrutiny, and Recent lawsuit The allegation filed against Facebook by 46 states was that it “illegally” bought out competitors to increase its market power.

The fate of the Rentpath / Costar deal halted further antitrust investigations for PropTech companies in the United States. CoStar built its business over the past decade through acquisitions and currently has other deals in the works, including the listing site HomeSnap, which FTC reviewed last month, And a Bidged for property analytics company CoreLogic. Kostar and RentPath are also known for contestant Zillow Build your business through a series of acquisitionsIncluding, Trulia for $ 3.5 billion in 2014.