REcolorado board removed as buyer is unveiled
The Realtor association owners of the MLS said the decision was made “in the best interests of our collective membership” following confidentiality violations.
The REcolorado board of directors is out, and so is the identity of its buyer.
Denver Metro Association of Realtors (DMAR) and South Metro Denver Realtor Association (SMDRA) made the announcements on Friday afternoon. DMAR and SMDRA own REcolorado — for now.
The associations confirmed that they have signed a letter of intent to sell the company to MAZL, LLC, for an undisclosed price. MAZL, "a private company formed specifically for the purpose of acquiring the MLS service," is headed up by J. Burks, who is described as "a leader in the real estate industry for more than 40 years."
Board let go — and also executives? Also Friday, DMAR and SMDRA announced the removal of the REcolorado board, "a result of the violation of the board of directors' signed obligations to maintain confidentiality."
A representative for the associations said staff was not let go, however, Leesa Baker, vice president and COO, posted Friday afternoon on LinkedIn that she was "Open to work" and seeking a new role. A former volunteer board director said on Facebook that CEO Gene Millman had been let go as well, with board member Larry McGee taking over the top job.
How we got here: The proposed sale of REcolorado was confirmed Monday by a member of the board of directors in response to swirling rumors. The MLS also pushed back on the association's argument that now is "the right time to sell" with the industry facing legal challenges and pressure to separate Realtor associations from MLSs.
"Coupled with the response of the REcolorado board of directors over the past several days we have reached this decision which we believe is in the best interests of our collective membership, our long-term ownership and operational goals," DMAR and SMDRA said Friday.
NAR has not yet replied to a request for comment.
What the new owner has to say: "With this change in ownership, our commitment to providing a broker-centric platform remains steadfast," said J. Burks, managing member of MAZL, LLC. "We assure the subscribers that REcolorado will continue to operate as a Multiple Listing Service, maintaining its core mission of delivering exceptional data, tools and resources to Realtors and licensees."