Sale of leading MLS ‘may bring added uncertainty’
A statement from REcolorado says its potential sale to a private equity firm is not the best way to separate MLSs from Realtor association ownership.
With a sale to a private equity firm looming, REcolorado says it supports the separation of MLSs from association ownership — but not like this.
"While we support a vision for decoupling the MLS from Realtor association ownership, selling your most valuable tool to a private equity firm is a questionable way to achieve that and may bring added uncertainty," the nation's 16th-largest MLS said in a statement posted on its website Wednesday evening.
"We disagree with their approach and are dedicated to keeping REcolorado a broker-focused business partner and will continue to pursue all options to make certain your MLS remains a locally owned organization that is operated in your and your clients' best interest," the MLS added.
How we got here: Denver Metro Association of Realtors (DMAR) and the South Metro Denver Realtor Association (SMDRA), the current owners of REcolorado, confirmed on June 25 that they reached an agreement in principle to sell the MLS to a private company.
The previous day, an REcolorado exec shared details of the deal in response to swirling rumors and said that the MLS had been negotiating with the associations to become self-owned before finding out that its owners had chosen a different path.
What the associations have to say: "We strongly believe that this is the right time to sell" REcolorado, DMAR and SMDRA said in a statement, adding that "decoupling MLSs and Realtor Associations could help protect MLS organizations from ongoing antitrust litigation" and "improve MLS management."
REcolorado's perspective: The MLS on Wednesday identified reasons why they believe being self-owned is the better option, with an emphasis on the benefits on local connections.
"Our policies, developed with your input, give you options to support your individual clients while also ensuring you have consistent, comprehensive data powering your products and insights," REcolorado said, calling out its award-winning leadership and "strong strategic partnerships."