Wednesday, May 9, 2012

CoStar Closes LoopNet Acquisition To Begin New Chapter in CRE Technology

The combining of the two firms looks definitely like a monopoly of the CRE Tech services. Both companies dominate their niche so I would think that the likely scenario would be an increase in the cost in usage fees. Loopnet is currently not powerful enough to enable a shunt of what is really a stalled industry. Transaction volume remains low and most of the Loopnet listings sit for long periods. Maybe as a combined group they will be able to figure out how to kick CRE into a higher gear.

For more, click here

1 comment:

  1. I followed this acquisition closely through an analyst whose company had a large position in Costar.

    Key items summarized from the FTC decision:

    In order to satisfy FTC concerns Costar was required to sell LoopNet's interest in Xcelingent and to refrain from conduct hindering other providers of commercial real estate information services in the United States.

    Also in order to allow for others, including Xceligent, to expand or enter into the market, CoStar will lift non-compete provisions and allow customers in longer-term contracts to terminate them early. CoStar also will refrain from bundling its products together in ways that could impede its competitors.