Third Point Launches CoStar Campaign, Pushes Strategy Change (1)

Third Point LLC has launched a campaign against CoStar Group Inc. and is pushing for changes to the strategy and board of the real estate analytics group.

In a letter to the company’s directors, Dan Loeb’s activist firm flagged concerns over “weak board oversight” and “disastrous capital allocation policies.”

Third Point is calling for the majority of CoStar’s board to be replaced; a review of its residential real estate businesses; and a refocus on the core commercial property operations.

“Our dim view of the company’s strategy is plainly shared by other shareholders, underscored by the abysmal stock performance of ...