CoStar Completes $1.6B Matterport Deal to Boost AI-Driven Real Estate Technology

CoStar Completes $1.6B Acquisition of Matterport to Boost AI-Driven Real Estate Solutions

CoStar Group (CSGP) has finalized its $1.6 billion purchase of Matterport, a leader in 3D modeling technology. This acquisition aims to accelerate the digital transformation of real estate through enhanced AI-powered tools.

Financial Highlights

• Matterport reported nearly $170 million in revenue for fiscal year 2024, marking an 8% increase from the previous year.
• Subscription revenue grew 14%, reaching $99.5 million.
• Despite revenue growth, Matterport posted a net loss of $256 million, up almost 30% compared to 2023.
• CoStar generated $2.7 billion in revenue during 2024, an 11% year-over-year increase.

Strategic Fit and Future Plans

The two companies share a longstanding relationship, with CoStar having been a client since Matterport's early beta phase. The acquisition was motivated by strategic alignment rather than financial necessity.

Matterport CEO RJ Pittman described the deal as a "force multiplier," emphasizing the goal of creating a unified, digital-first real estate experience. The acquisition provides Matterport with access to CoStar’s extensive global property database, expanding their reach significantly.

CoStar intends to maintain Matterport's existing product roadmap, focusing on enhancing AI and visualization technologies. Employee input was a key part of the acquisition process, and CoStar is supporting Matterport's remote-first work culture.

Operational Changes and Integration

• Matterport will move its headquarters from Sunnyvale to a new R&D center in Palo Alto.
• Teams based in San Francisco and London will transition into CoStar offices later this year.
• Despite integration, Matterport will continue operating as a standalone business unit within CoStar’s broader ecosystem, which includes commercial, residential, and marketplace brands.

This acquisition positions CoStar to further develop AI-driven real estate tools that improve property visualization and data access across markets.

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