redfin shareholders approve merger with rocket companies

Redfin Corp (NASDAQ:RDFN), the $1.25 billion real estate technology company whose stock has gained over 40% in the past year, announced that its shareholders approved two key proposals during a special meeting held on Wednesday. The meeting, conducted virtually, saw participation from 58.63% of Redfin’s outstanding common stock, representing 75,061,524 shares. According to InvestingPro data, the company maintains a FAIR financial health score, suggesting stable operational conditions ahead of this strategic move.

The first proposal, known as the Merger Proposal, involved the approval of the Agreement and Plan of Merger with Rocket Companies, Inc. Under this agreement, Neptune Merger Sub, Inc., a subsidiary of Rocket, will merge with Redfin, making Redfin a wholly owned subsidiary of Rocket. The proposal received strong support, with 74,132,089 votes in favor, 855,453 votes against, and 73,982 abstentions. With annual revenues of $1.04 billion and significant market volatility, as highlighted in InvestingPro’s analysis, this merger could provide needed stability.

The second proposal, the Compensation Proposal, sought approval on a non-binding advisory basis for the compensation arrangements for Redfin’s named executive officers in connection with the merger. This proposal also received overwhelming support, with 71,419,289 votes in favor, 2,900,146 votes against, and 742,089 abstentions.

The approval of the Merger Proposal satisfies a key condition for the completion of the merger, which is expected to close on or before July 1, 2025. The closing is contingent upon the fulfillment of remaining conditions, including the collapse of Rocket’s "Up-C" structure.

The merger’s progress follows the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1987, which ended on May 8, 2025. Redfin’s shareholders’ approval marks a significant step forward in the merger process.

This information is based on a press release statement filed with the Securities and Exchange Commission. For deeper insights into this merger’s potential impact and access to comprehensive merger analysis tools, including 8 additional ProTips and detailed financial metrics, visit InvestingPro, where you’ll find expert analysis and valuation models specifically designed for strategic corporate events.

In other recent news, Redfin, a technology-powered real estate brokerage, reported a 1% year-over-year decline in the median U.S. asking rent in May, settling at $1,633. This decline is attributed to an increased supply of apartments, with many units remaining vacant for months. Additionally, Redfin highlighted a significant shift in the U.S. housing market, where sellers now outnumber buyers by 34%, the highest imbalance since 2013. This trend is expected to lead to a 1% drop in home prices by the end of 2025, as sellers compete for a smaller pool of buyers.

Moreover, Redfin forecasts that U.S. home prices will flatten and potentially dip by 1% year-over-year by the fourth quarter. This projection is based on an increase in inventory and a decrease in sales, with high mortgage rates and economic instability contributing to the market’s downturn. April’s data showed a slight decrease of 0.1% in U.S. home prices, marking the first monthly drop since September 2022. This was accompanied by a 3.5% month-over-month decrease in pending home sales, as potential buyers adopt a cautious approach amid economic uncertainty.

Pending home sales in the U.S. have declined by 3.4% year-over-year in the four weeks ending May 11, marking the lowest level on record for this time of year, excluding 2020. Rising home-sale prices and elevated mortgage rates have pushed the median monthly housing payment to $2,860, close to a record high. Despite this, new listings have risen by 5.1% year-over-year, and the total number of homes for sale has increased by 14.3%, leading many sellers to offer concessions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.