Douglas Elliman Inc. (DOUG) Receives Acquisition Offer Following Investigation Involving Former Star Agents
Douglas Elliman Inc. (NYSE:DOUG), currently dealing with the fallout from lawsuits involving two former high-profile agents, has received a takeover offer from a rival that would roughly double its current stock price, according to sources familiar with the matter.
Anywhere Real Estate Inc., formerly known as Realogy, has made a bid valuing Douglas Elliman Inc. (NYSE:DOUG) at over $4 per share, though the offer is not expected to be accepted at that level, one person noted.
With more than 7,000 agents and 113 offices across New York City and other major US markets, Douglas Elliman Inc. (NYSE:DOUG) also operates several real estate service subsidiaries, including development marketing, property management, commercial real estate, and title services.
A successful deal would give Anywhere a significant foothold in the residential brokerage space, especially in major cities like New York and Miami. Douglas Elliman has been involved in some of the most high-profile luxury transactions, including the $238 million Manhattan penthouse purchase by Ken Griffin in 2019.
Douglas Elliman has faced significant internal turmoil, including criminal charges against two former brokers and the resignation of longtime CEO Howard Lorber. New CEO Michael Liebowitz is now focusing on reducing costs and boosting the company’s marketing arm. These changes come at a difficult time for the real estate sector, which is dealing with high mortgage rates, falling home sales, and legal scrutiny over agent fees. Amid these challenges, the company received a takeover offer and may consider selling parts of its business. Despite the setbacks, Douglas Elliman Inc. (NYSE:DOUG) remained a top player in 2024, ranking sixth nationally with $36.4 billion in sales.
Following the news, DOUG surged by over 37% on Friday Morning. Its YTD returns now stand at over 73%.
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