On Tuesday, July 24, The Real Deal released a post entitled “CoStar nearly doubles earnings in Q2.” The post was based upon protection of our second quarter earnings call. Hundreds of people listened to the profits call. It was recorded, there is a script, and there is a written transcript readily available on the Web. There can be no confusion as to what is said on among these extremely noticeable, extremely recorded calls. The Real Offer associated several declarations to our CEO and to CoStar Group that were clearly never made. A number of concerned customers and investors contacted us for clarification because they were naturally confused by the odd declarations The Real Offer stated we made.
We wish to set the record directly.
The Real Deal incorrectly reported that CoStar Group mentioned that it plans to shut down LoopNet.
No one at CoStar Group has ever mentioned that LoopNet will be closed down. LoopNet is the most effective online industrial real estate market worldwide. It generates more than $120 million in earnings, it is growing rapidly, it pays and we continue to invest in it. Over 65,000 owners and brokers market residential or commercial properties on LoopNet. About 5 million occupants and investors browse LoopNet each month. LoopNet is very valuable to both the CRE market and CoStar Group.
The Real Deal improperly reported that CoStar Group specified that it plans to fold ForRent.com into Apartments.com.
Nobody at CoStar Group has actually ever mentioned that ForRent will be folded into Apartments.com. The ForRent brand names and its 4 websites are valuable elements of our Apartments.com network. We simply acquired them previously this year for $385 million. More than 3.5 million occupants go to ForRent.com every month. Apartment owners invest roughly $85 million a year to reach the countless tenants looking for houses on ForRent.com. It is clear that we are not planning to close down ForRent.com.
The Real Offer incorrectly reported that in our Q1 2018 profits call that CoStar Group mentioned that it is prepared to take legal action against 30,000 consumers.
Nobody from CoStar ever said this; it is clearly not in any company’s interest to do so, and it is plainly not possible to do. Exactly what we did say is, “Our company believe that there are as lots of as 10,000-plus people, and perhaps 2 to 3x that number, unlawfully accessing CoStar.” We did not say we are suing them. We never ever call the people taking our item clients because individuals accessing CoStar without paying for it are not our consumers. CoStar is working hard to stop theft because it increases the expense of the item for the sincere individuals who pay for the service.
The Real Offer has actually now acknowledged that CoStar never ever stated the important things that The Real Offer reported CoStar stated. CoStar notified The Real Deal editorial group as quickly as we uncovered the inaccuracies. The Real Deal posted a correction at 7:05 am on July 25 getting rid of the improperly reported declarations. Whether these falsehoods were intentional or just the result of bad reporting, we do unknown. It is worth noting that The Real Offer improperly reported this information after CoStar Group announced that it is employing lots of renowned commercial property press reporters all over the world to develop a competing business property news service.