In a significant development within the real estate sector, Anywhere Real Estate Inc. and Compass Inc. have unveiled plans to merge in an all-stock transaction valued at approximately $10 billion, which includes the assumption of debt. The deal, which has garnered unanimous approval from the boards of both companies, will see current shareholders of Compass owning about 78% of the newly formed entity on a fully diluted basis, whereas Anywhere’s shareholders will hold nearly 22%.
Following the announcement, shares of Anywhere Real Estate surged 63% during premarket trading, while Compass experienced a notable decline, with its stock dropping over 12%. The retail sentiment toward Anywhere shifted dramatically from ‘bearish’ to ‘bullish’ in just a day, reflecting heightened investor enthusiasm, as evidenced by a significant increase in message volumes on platforms like Stocktwits.
Under the agreement’s terms, each share of Anywhere common stock will be exchanged for 1.436 shares of Compass Class A common stock, resulting in a valuation of $13.01 per share for Anywhere. This share price is determined based on Compass’ 30 trading-day volume-weighted average price as of September 19, 2025.
The merger is anticipated to finalize in the second half of 2026, with Compass CEO and founder Robert Reffkin set to lead the combined company post-transaction. Additionally, Compass has secured a $750 million financing commitment from Morgan Stanley Senior Funding, which reinforces its financial positioning for the merger.
This strategic move will unify around 340,000 real estate professionals across a shared network operating in every major U.S. city, as well as extending services to approximately 120 countries and territories worldwide.
Market dynamics surrounding both companies have shown significant volatility; shares of Anywhere have spiked 115% in the current year, while Compass has recorded an impressive nearly 62% gain year-to-date. The anticipated merger is expected to yield around $225 million in non-GAAP operating expense synergies, accounting for potential dissynergies and friction costs, indicating a forward-looking strategy aimed at enhancing operational efficiencies.
As this merger progresses, both companies and their shareholders will be closely monitoring market conditions and investor sentiment, particularly as retail interest remains high.
