Compass and Zillow Play Chicken
Industry Relations
Stakes for Compass If They Lose
Rob explains how a loss could threaten Compass's recruitment and retention narrative and imperil Anywhere acquisition value.
In this episode, Rob and Greg dive into the newly surfaced Zillow–Compass court documents, a leaked Zillow strategy plan, and Mike DelPrete's analysis of the preliminary injunction hearing. They also discuss the broader market context—from the real cost of living in 2025 to generational tension—and debate whether the lawsuit will meaningfully change industry behavior. The conversation closes with predictions, stakes, and possible compromise paths between Compass and Zillow.
Key Takeaways
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A "must-read" macro article kicks off the show.
Rob discusses a Substack piece on the U.S. poverty line and how outdated metrics distort today's economic reality. Zillow and housing affordability tie back into the industry.
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The leaked Zillow strat plan is unusually strong.
Both hosts agree the internal document is one of the most robust strategic plans seen in real estate, showing detailed situational analysis and clear tactical pathways. MLSs should study its structure.
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Compass vs. Zillow: The PI hearing matters.
Rob argues the preliminary injunction ruling may reshape industry norms more than the eventual trial. If Compass wins, Zillow may need to pivot fast. If Zillow wins, Compass may face recruiting and retention issues.
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DelPrete's takeaway: "Nothing will change."
Greg leans toward this view, citing industry inertia. Rob disagrees, pointing to long-term structural shifts like MLS loss of compensation and NAR's diminishing relevance.
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Broker exclusives and 3PM are the core battle.
The debate centers on whether private/preview listings harm consumers or empower brokers. Greg doubts the model's long-term viability; Rob sees competitive incentives that could drive proliferation.
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Potential compromise ideas emerge.
The hosts float options such as removing Days on Zillow, hiding public price-change history, or creating a paid Zillow product for private listings. No clear middle ground exists yet.
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Predictions and a steak-dinner bet.
Both tentatively lean toward Compass having a better storytelling advantage in court, though the outcome is far from certain.
Links
Zillow's coordinated pressure campaign against MLSs Ocusell Fills the Gap Aligned Showings A Strategic Analysis of the Compass v. Zillow Court Hearing
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