Rocket Companies Inc. (NYSE:RKT) announced on Monday it will acquire Redfin Corp. (NASDAQ:RDFN) in a $1.75 billion deal to bring homebuyers an end-to-end, online real estate solution from browsing listings to securing a mortgage. 

The combined company aims to create a real estate and lending powerhouse that offers customers a seamless experience from search to close.

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“We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan -- all in a matter of minutes,” said Glenn Kelman, CEO of Redfin.

Analysts are anticipating the acquisition to increase Zillow Group Inc.'s (NASDAQ:ZG) NASDAQ: Z) competition with Rocket Companies, now bolstered by Redfin’s assets and capabilities. 

Barclays research analysts see a "modest" net negative for Zillow as Rocket and Redfin will likely be a stronger, more comprehensive solution once integrated, per TipRanks. 

Gordon Haskett upgraded Redfin to Hold from Underperform following the acquisition news on Monday.  The firm noted a negative reaction in Zillow shares as it sees a combined Redfin/ Rocket platform creating stronger competition and a more integrated real estate platform competitor. 

What Else: It should be noted that Zillow may need to reevaluate its recent partnership with Redfin, announced just last month, which made Zillow the exclusive provider of multifamily rental listings on Redfin’s platforms. 

Zillow paid Redfin $100 million upfront for the five-year deal that was expected to boost Zillow’s rental business, which generated $453 million in revenue in 2024. Redfin said it would focus on its core business areas, such as brokerage, lending and title services, while benefiting from increased traffic and revenue from its rental business. 

It is unclear if the partnership between Zillow and Redfin will continue after Rocket's acquisition is completed. 

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