Editor’s Note: This article has been updated to include remarks from Berkshire Hathaway HomeServices CEO Gino Blefari, who refuted claims that HomeServices of America is in talks to be sold to Compass.
According to an article published in the Wall Street Journal on Thursday, Compass is reportedly in advanced talks to acquire HomeServices of America, Warren Buffett’s real estate brokerage business.
But hours after the report broke, Berkshire Hathaway HomeServices CEO Gino Blefari sent an email to its network leaders refuting the claim, stating, “no such sale is being contemplated.”
Are Talks for an Acquisition in Place?
According to WSJ’s sources, the exact terms of the deal remain undisclosed, but if discussions continue smoothly, a deal could be reached soon.
Blefari, however, completely negated these claims in an email sent to network leaders:
The message reads:
Dear Network Leader,
“Many of you may be aware of articles published in the Wall Street Journal and elsewhere today stating that HomeServices of America was in talks to be sold to Compass. I want to confirm to you that there are no discussions, negotiations, or agreements to sell HomeServices or any of its affiliated companies, and that includes the Berkshire Hathaway HomeServices franchise business. Moreover, no such sale is being contemplated.
“The genesis of this story is not known at this time; it’s important to note that it was based on rumors from unnamed sources and that HomeServices was not given notice of the article nor the opportunity to respond. I am aware that this misinformation may have been alarming, confusing, and disruptive to you and your network agents. I hope this email provides clarification for you so that you can go out into the real estate community confidently and with the truth regarding these claims.”
Gino Blefari
Chairman & CEO, Berkshire Hathaway HomeServices
March Madness for Real Estate Mergers
If Compass were to acquire HomeServices of America, it would combine two major players in the industry.
Compass was the largest brokerage in the U.S. by sales volume in 2023 for the third year in a row, according to RealTrends. HomeServices of America, a Berkshire Hathaway subsidiary, was the fourth-largest, with 820 brokerage offices and 270 franchisees.
Even if this particular acquisition isn’t happening, the real estate industry is already seeing a wave of high-profile mergers and acquisitions:
- Rocket Companies just announced a $1.75 billion acquisition of Redfin, merging a mortgage giant with the tech-driven brokerage.
- Keller Williams sold an investment stake to Stone Point Capital, marking a shift in its financial structure and future growth strategy.
With these recent moves, it’s clear that consolidation is accelerating across the industry. Whether or not HomeServices of America is next remains to be seen.
Stay tuned for more details.
