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oStar Group's recent moves are a direct result of its deal with investors D. E. Shaw and Third Point, aimed at boosting performance. As part of this agreement, the company has formed a special committee to scrutinize brand investments and international expansion plans. This comes on the heels of CoStar's high-profile resolution with Realtor.com, which had been a contentious issue for some time.

    A key aspect of these changes is the refreshment of CoStar's board, with an increased focus on Homes.com profitability. In response to investor pressure, the company has appointed three new independent directors and a new board chair. The Capital Allocation Committee will oversee a comprehensive review of international expansion and brand investment efforts, with Founder and CEO Andy Florance at its helm.

    The committee's primary objective is to ensure that CoStar's ongoing investment in Homes.com yields an appropriate timeline for profitability. This effort will involve reviewing the company's capital structure, allocation priorities, and financial targets, including those related to international expansion and significant investments across various brands and products.

    New board members Rachel Glaser (formerly of Etsy) and Christine McCarthy (Disney) bring chief finance officer expertise, while John Berisford, a former S&P Global executive, joins the team. Louise Sams, a seasoned member of the CoStar board, will take over as chair, bringing considerable legal expertise to the role.

    CoStar's efforts to revamp Homes.com have been significant, requiring billions of dollars in investment and resources since its acquisition in 2021. The company has launched major content and SEO initiatives, hiring writers and photographers to produce original material for the site. In 2024, CoStar announced a $1 billion ad spend, described as "the biggest marketing campaign in real estate history."

    The board shuffle comes amidst CoStar's recent acquisition of Matterport for $1.6 billion, which has been seen as a major opportunity by Florance. The company's lengthy legal battle with Realtor.com has also taken a toll on its finances, despite being on the hook only for attorney fees and no damages.

    "We are well-positioned to extend our long track record of creating stockholder value," Florance said in a statement announcing the board changes. "With the strength and support of the refreshed board, CoStar Group is poised to drive growth and profitability across its digital real estate solutions."