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‘The CEO we would least want to compete against’: How Wall St views Domain’s suitor

US analysts describe CoStar CEO Andy Florance as smart, savvy and a feared competitor, expecting him to invest heavily to challenge REA Group’s dominance.

John Buckley
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The prospect of a renewed challenge from Domain to REA’s market dominance emerged late last month when CoStar launched an aftermarket raid on the company. Shutterstock.

Andy Florance, the founder and CEO of US property giant CoStar, is known in market circles as a tough competitor — one that few would want to face. His $2.6 billion takeover bid for Domain could set up a fresh battle with News Corp’s REA Group.

The bid aligns with CoStar’s global acquisition strategy, which has seen it snap up companies across the real estate sector, including the UK’s OnTheMarket and digital mapping firm Matterport. It also threatens to deepen tensions with News Corp’s digital real estate business, where REA Group is the crown jewel.

Jeff Meuler, a senior research analyst at Baird, said Florance’s aggression and ambition meant he was unlikely to be satisfied with Domain’s current market position.

“We consider Andy smart/savvy, strategic and economic, a good operator that figures things out with data and market feedback including often via focus groups, and extremely competitive, hard-working and ambitious,” Meuler told Capital Brief.