Rocket Buys Redfin for $1.75 Billion
In a bold move to reshape the future of homebuying, Rocket Companies has announced it will acquire Redfin in an all-stock transaction valued at $1.75 billion. The merger will combine two of the most recognized names in real estate tech and mortgage lending, signaling a major consolidation in the space.
Detroit-based Rocket Companies, the parent firm behind Rocket Mortgage, Rocket Loans, and Rocket Money, will issue 0.7926 shares of its Class A stock for each share of Redfin. The offer represents a 63% premium over Redfin’s average stock price in the month leading up to March 7, 2025. Upon closing, Rocket shareholders will own 95% of the combined entity, with Redfin shareholders holding the remaining 5%.
Redfin, founded in Seattle in 2004 and publicly traded since 2017, built its brand as a tech-forward residential real estate brokerage platform serving the U.S. and Canadian markets. Known for its end-to-end home search experience and salaried agents, the company once referred to itself as the “Amazon of real estate.” Despite a meteoric rise during the pandemic—peaking at $96 per share in early 2021—Redfin’s stock had plummeted below $10 and recently took another hit after disappointing Q4 2024 earnings and weak forward guidance.
The acquisition marks a strategic convergence of capabilities: Redfin’s data-driven home search tools and real estate agent network will join forces with Rocket’s dominance in digital lending and fintech services. Together, the companies aim to create a unified, seamless customer journey from property discovery to mortgage approval.
“Rocket and Redfin’s approaches to lending and brokerage service have always been two halves of one vision to make the whole home-buying process magical,” said Redfin CEO Glenn Kelman, who will stay on and report to Rocket CEO Varun Krishna. “We want a customer to be able to check her phone to find out what she can afford, see which homes are just right for her, schedule a tour with a local, expert Redfin agent, and get pre-qualified for a loan, all in a matter of minutes.”
The transaction has already received board approval from both companies and is expected to close in Q3 2025, pending shareholder approval from Redfin.
As the housing and fintech markets continue to evolve, the Rocket-Redfin merger could set a new industry standard—one that merges real estate discovery with financial automation into a single, tech-powered experience.
