Redfin to be acquired by Rocket Companies in $1.75B deal

Rocket Companies agreed to acquire Seattle-based Redfin in a $1.75 billion deal that will bring together the nation’s largest mortgage lender with a longtime tech-fueled real estate brokerage.

“Rocket and Redfin have a unified vision of a better way to buy and sell homes,” Rocket Companies CEO Varun Krishna said in a statement. “Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs and increases value to American homebuyers.”

Redfin CEO Glenn Kelman will continue leading Redfin, and the Seattle-based company will maintain its brand.

“Once the deal closes, Rocket and Redfin will form a technology company with the national scale of a lender, brokerage, title company and home-search site,” Kelman wrote in an email posted to the company’s blog. “Together, we’ll be able to do stuff we could’ve only dreamed about before.”

The deal values Redfin at more than double its market capitalization prior to Monday’s announcement. Total enterprise value of the acquisition, including Redfin’s debt and other financial obligations, is $2.4 billion.

Shares of Redfin were up more than 70% in pre-market trading Monday. Rocket stock was down 10%.

Redfin, which launched in 2004 and went public in 2017, attracts nearly 50 million visitors to its platform each month.

Kelman said the acquisition will help give Redfin access to new data that can boost its AI algorithms.

“We expect that a Redfin.com home-shopper will be able to schedule a home-tour, find out what she can afford, then get pre-qualified for a loan, on-demand, in a matter of minutes,” he said. “Together, we can be better than ever at building lifelong relationships with customers who need financial advice before their search ever starts, or who want to explore a home-equity loan years after completing a purchase with Redfin.”

The company employs more 4,000 people — including more than 2,200 agents across 42 states — and makes most of its money via a brokerage model. It also offers its own mortgage product.

Redfin grew revenue by 7% in 2024 to $1.04 billion, with a net loss of $164.8 million, up from $130 million in 2023.

The company has gone through multiple rounds of layoffs over the past two years as it navigates a tough real estate market. 

In 2022, responding to a housing market slowdown, Redfin laid off staff and ditched its iBuying program. It also laid off 4% of its workforce, or 201 employees, in April 2023, and did another layoff in August 2024.

The company cut 450 employees after announcing a recent licensing deal with Zillow Group.

Redfin’s stock is down nearly 20% over the past year.

Redfin last year rolled out Redfin Next, a new compensation model for its agents that eliminated salaries and has expanded to more cities.

In addition to mortgage lending products, Detroit-based Rocket Companies also sells auto loans and other fintech offerings. The company’s stock is up nearly 30% in the past 12 months. Its market capitalization is around $31 billion.

The deal is expected to close in the second or third quarter.

Previously: Could Zillow buy Redfin? New rentals partnership brings real estate rivals closer together