TLDR
- Shares of Compass dropped 11.8% to $7.61 on Wednesday after reports emerged of an antitrust inquiry by New York’s Attorney General’s Office.
- According to The Real Deal, investigators from the AG’s office have reached out to major NYC real estate brokerages seeking details about Compass International Holdings’ market position.
- This investigation comes after Compass completed its $1.6 billion acquisition of Anywhere Real Estate, forming the nation’s largest residential brokerage with more than 340,000 agents.
- Federal antitrust officials initially sought to review the merger more thoroughly, but the company successfully appealed to leadership, bypassing an extended investigation.
- Year-to-date, Compass shares have fallen 28%, though they remain 23% higher compared to 12 months ago.
Shares of Compass ended Wednesday’s trading session at $7.61, marking an 11.8% decline, following a report from The Real Deal indicating that New York’s Attorney General’s Office is potentially examining the company for antitrust violations.
According to the publication, investigators from the Attorney General’s antitrust unit have been reaching out to executives at several prominent New York City real estate firms, seeking information regarding Compass International Holdings. When contacted, the AG’s office did not provide a statement.
The company’s shares have faced significant headwinds throughout 2026. They have now declined 28% since the beginning of the year, although they still show a 23% gain over the trailing 12-month period.
Compass International Holdings came into existence earlier this year following the completion of the $1.6 billion purchase of Anywhere Real Estate. This merger created the country’s largest residential real estate brokerage firm, boasting a network of over 340,000 agents and franchise operators.
Anywhere Real Estate serves as the parent organization for well-known brands such as Corcoran, Sotheby’s International Realty, and Coldwell Banker.
A Rapid Transaction
The transaction reached completion in January, merely four months following its September announcement — significantly faster than the nine-month timeframe initially projected by both companies.
This accelerated timeline attracted attention. The Wall Street Journal reported in January that Gail Slater, who leads the DOJ’s antitrust division, had sought to initiate a comprehensive review of the transaction to evaluate potential anticompetitive concerns.
However, that extended review was never conducted. Compass and its attorneys appealed directly to Todd Blanche, who was serving as Deputy Attorney General at the time, and he determined that any concerns could be managed without launching a formal probe.
The company also brought in Mike Davis, an attorney with connections to President Trump and a reputation for assisting in the confirmation of conservative judicial nominees, to advocate on its behalf with Blanche’s office.
A representative from Blanche’s office informed the Journal that the department “complied with its obligations” under federal antitrust regulations, while noting that “nothing precludes the department from taking an enforcement action in the future if anticompetitive effects are found.”
Congressional Concerns Emerged Earlier
In December, Senators Elizabeth Warren and Ron Wyden sent correspondence to both Slater and FTC Chair Andrew Ferguson, calling on them to examine the merger carefully.
The senators expressed concern that the consolidated entity could maintain commission rates at “artificially high” levels and exercise excessive influence over the home purchasing process.
Their letter referenced statistics indicating that the two firms already controlled approximately 70% of residential property sales by dollar value in Northern California and over 40% in New York City.
The investigation by New York’s Attorney General now presents a new regulatory challenge for Compass at the state level. The company was unavailable for comment.
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