Third Point and DE Shaw have launched an activist attack against CoStar, the real estate data group, questioning their multibillion-dollar investment in Homes.com. The hedge funds challenge the wisdom of backing a lossmaking listings site, creating tension among shareholders about CoStar's strategic direction.

The activist intervention comes as CoStar faces pressure to demonstrate returns on its ambitious expansion into online real estate listings. The firm's pivot toward digital platforms has drawn scrutiny from investors who question whether the Homes.com acquisition aligns with shareholder interests amid shifting market dynamics.

CoStar's management now confronts a balancing act between defending their long-term vision for real estate data integration and addressing immediate investor concerns about profitability. The outcome of this activist battle could reshape CoStar's approach to digital transformation in property markets.