Rocket Companies to Acquire Redfin for $1.75 Billion

Redfin to be Acquired by Rocket Companies in $1.75 Billion Deal

Redfin is set to be acquired through a complete stock exchange, establishing the value of the real estate platform at $1.75 billion.

The acquisition is being undertaken by Rocket Companies, a financial and real estate holding company headquartered in Detroit, Michigan.

Rocket Companies’ Portfolio

Rocket Companies encompasses a range of well-known brands. These include Rocket Mortgage, Rocket Money (previously known as Truebill), and Rocket Loans.

The merger aims to integrate the distinct capabilities of both companies, specifically in the areas of home search and financial services.

Synergies in Home Buying

“The lending and brokerage approaches of Rocket and Redfin have consistently aligned with a shared vision: to transform the entire home-buying experience,” stated Glenn Kelman, CEO of Redfin.

“Our goal is to enable customers to quickly determine their affordability, identify suitable homes, arrange viewings with local Redfin agents, and secure pre-qualification for a loan—all within minutes.”

Redfin’s History and Performance

Established in Seattle in 2004, Redfin operates a residential real estate brokerage platform across the United States and Canada.

The company, which has branded itself as the “Amazon of real estate,” became publicly traded in 2017.

Initially, its stock price remained relatively stable around $20. However, like many technology firms, Redfin experienced significant growth during the pandemic.

Its stock reached a peak of $96 in early 2021 before declining to below $10 over the subsequent three years.

Recent Financial Performance

In the weeks leading up to the announcement, Redfin’s shares had decreased by over 30%.

This decline followed disappointing Q4 2024 earnings and a less-than-optimistic forecast for the current quarter.

Rocket Companies’ Financial Standing

Rocket Companies went public in 2020 and currently boasts a market capitalization of $31 billion.

The proposed offer of $12.50 per share represents a 63% increase over Redfin’s volume-weighted average price (VWAP) for the month preceding March 7, 2025.

Terms of the Agreement

The deal involves exchanging 0.7926 shares of Rocket Companies’ Class A stock for each share of Redfin common stock.

Upon completion, Rocket Companies’ shareholders will hold 95% ownership of the combined entity, while Redfin shareholders will own the remaining 5%.

Approval and Timeline

Both companies’ boards of directors have approved the transaction.

However, final approval is contingent upon a vote by Redfin’s shareholders, which is anticipated to occur in Q3 of 2025.

Glenn Kelman, who has served as Redfin’s CEO since 2005, will continue in his role and report to Varun Krishna, CEO of Rocket Companies.

Note: This article has been updated to reflect the clarification that Redfin will continue to operate as a public company under the umbrella of Rocket Companies.