Last night, after the market closed, CoStar announced it had acquired Loopnet in an $860 million deal. Jonathan O'Connell has a good piece at the Washington Post that includes quotes from the main players and some reaction to the deal.
Today, we've got more thoughts beginning to roll in. Twitter is abuzz with rapid reactions. And there are a few blog posts to check out.
Duke Long, who is never shy about sharing what he thinks, posted a short video with his reaction to the deal. If you're familiar at all with Duke, you know that he's passionate about improving data standards in the commercial real estate space. He lays out some interesting hypothetical scenarios as to what alternatives to what we have now could be.
Coy Davidson, meanwhile, has put up a poll to gauge the industry's reaction. Early results indicate that people think having one dominant data provider will ultimately be unhealthy for the commercial real estate industry.
Lastly John Reeder weighs in with some speculation as to why he thinks the deal is taking place and what it might mean going forward.
I think what's a lot more likely is that Costar uses Loopnet's platform and access to their subscriber base to sell a wider variety of data packages at more price points on the spectrum. They will absolutely try to upsell to their premium packages, but I also think they'll figure out ways to bundle their packages in different ways to make them more palatable to Loopnet's subscriber base.
Before the acquisition Loopnet was working on a service that would have been a combination of Constant Contact email campaign and also war room capability. I think it's probably likely that the Costar/Loopnet combo will put the boot on the neck of any of the third parties out there doing the same thing today. That's a good example of where their combined scale is going to provide some benefit.