Third Point Targets CoStar Group with New Activism Campaign

Third Point, a hedge fund managed by Daniel Loeb, is launching a new activist campaign against real estate data provider CoStar Group. The campaign aims to replace a majority of the board, rein in costs, reassess executive compensation, and refocus the business on improving shareholder returns. Third Point is particularly frustrated with CoStar's expansion into residential real estate, which the hedge fund believes has involved excessive spending. The campaign seeks to shut down or divest CoStar's residential operations, including Homes.com, and focus on the core commercial property data and analytics franchise.