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CoStar Under Fire: Hedge Funds Revolt As Boardroom Pressure Explodes!

Activist pressure at CoStar Group has entered a more confrontational phase as hedge fund D.E. Shaw publicly escalates its campaign for governance and strategic change at the commercial real estate data giant. The firm’s renewed push for a board shake-up comes as CoStar’s shares have materially underperformed, with investors increasingly focused on the capital intensity, losses, and execution risk tied to the Homes.com expansion. The situation has been further complicated by the re-emergence of activist Third Point, whose prior standstill agreement with CoStar has expired, reopening the door to proxy contests and director nominations. At the center of the dispute is founder and CEO Andrew Florance, whose long-standing control and conviction behind Homes.com now stand in direct tension with shareholder demands for discipline, monetization, and capital returns.