With its acquisition by Rocket, Redfin’s saga as an independent company is coming to a close.
Why it matters: Launched in 2002, Redfin could be considered the original real estate disruptor, featuring discounted commissions, employed agents, and innovative technology – but the business model just never clicked.
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Redfin was rarely profitable, accumulated a large debt load, and was acquired for the same value as when it went public over seven years ago.
After its first day of trading as a public company in 2017, Redfin was valued at $1.73 billion – just shy of its acquisition price of $1.75 billion seven years later.
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Yes, but: After Redfin’s first day of trading in 2017 each share was valued at $21.72, significantly higher than Rocket’s acquisition offer of $12.50 per share.
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If you owned $100 of Redfin shares in 2017, they would be worth $58 today – a decline of 42 percent (due to dilution – it’s a thing!).
