Redfin completes merger with Rocket Companies, delisting from Nasdaq

Redfin Corp (NASDAQ:RDFN) announced Monday that it has completed its merger with Rocket Companies, Inc. (NYSE:RKT), making Redfin a wholly owned subsidiary of Rocket. The transaction was finalized in accordance with a previously disclosed merger agreement dated March 9, 2025, as detailed in a press release statement and Redfin’s filing with the Securities and Exchange Commission.

As a result of the merger, each outstanding share of Redfin common stock was converted into the right to receive 0.7926 shares of Rocket Class A common stock, with cash paid in lieu of fractional shares. Redfin shares have been suspended from trading on the Nasdaq Global Select Market, and the company has requested removal from listing and registration with the SEC. Redfin also intends to terminate its reporting obligations under the Securities Exchange Act. For detailed analysis of this merger’s implications, including comprehensive financial metrics and expert insights, investors can access the full Pro Research Report on InvestingPro.

In connection with the transaction, Rocket became a co-obligor under Redfin’s outstanding convertible senior notes. Holders of the 0.00% convertible senior notes due 2025 may now convert each $1,000 principal amount into 10.9315392 shares of Rocket common stock, while holders of the 0.50% convertible senior notes due 2027 may convert each $1,000 principal amount into 8.4744792 shares of Rocket common stock.

Redfin also entered into agreements to guarantee Rocket’s $2.0 billion 6.125% senior notes due 2030 and $2.0 billion 6.375% senior notes due 2033, as well as several series of Rocket Mortgage senior notes. These notes are guaranteed on a senior unsecured basis by Rocket Mortgage, LLC and certain subsidiaries, with additional guarantees to be added if Rocket’s proposed acquisition of Mr. Cooper Group Inc. is completed.

Redfin repaid all outstanding borrowings under its first-lien term loan facility with Apollo Capital Management, terminating all related commitments and obligations.

Following the merger, the previous members of Redfin’s Board of Directors resigned, and Brian Brown and Varun Krishna were appointed as new directors. Redfin’s Certificate of Incorporation and bylaws were amended and restated in accordance with the merger agreement.

All information is based on Redfin’s July 1, 2025, press release statement and SEC filing.

In other recent news, Redfin Corp has announced that its shareholders approved a merger with Rocket Companies, Inc. This agreement will see Redfin become a wholly owned subsidiary of Rocket, with the merger expected to close by July 1, 2025. The merger’s approval marks a significant step forward, following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. In related developments, Redfin reported a 1% year-over-year decline in the median asking rent in May, settling at $1,633, attributed to a high supply of apartments. This trend is reflected in 28 of the 44 major U.S. areas analyzed by Redfin, showing a decrease in asking rents. Additionally, Redfin data indicates a significant shift in the U.S. housing market, with sellers outnumbering buyers by 34%, the highest since 2013. This imbalance is expected to lead to a 1% drop in home prices by the end of 2025. Furthermore, Redfin’s reports suggest that U.S. home prices will flatten and decrease by 1% year-over-year by the fourth quarter, a notable change from the consistent price increases seen since 2012.

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