A PYMNTS Company

CoStar and LoopNet asked to sell interest in Xceligent for FTC settlement of merger

By  |  April 26, 2012
CoStar and LoopNet asked to sell interest in Xceligent for FTC settlement of merger

The Federal Trade Commission has proposed a settlement to resolve its competition concerns with CoStar Group’s $860 million acquisition of LoopNet. CoStar is the nation’s largest provider of information/marketing services to commercial real estate professionals. LoopNet provides online commercial real estate listings in the United States.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    In its proposed order, the FTC will require CoStar to sell LoopNet’s ownership interest in Xceligent, a provider of commercial property and listing information. Since Xceligent is considered CoStar’s most similar competitor, a CoStar-LoopNet merger would eliminate the competition between the two companies. LoopNet’s stake in Xceligent will be sold to DMG Information. CoStar-LoopNet is to ensure that Xceligent will be able to compete effectively with the merged entity; this includes selling the URL “commercialsearch.com” to DMG Information.

    An additional condition is that CoStar must lift non-compete provisions and allow customers to terminate longer-term contracts early with one year’s notice. CoStar is also prohibited from bundling its products “in ways that could impede its competitors.” The FTC is requiring such specific conduct is to allow rivals or new entrants to enhance competition in the markets for listings databases and information services.

    Full content: FTC Press Release

     

    Related content: Information Exchanges Among Competitors: The Commission Takes a New Look (Andreas Reindl, Leuphana University of Lüneburg)

     

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.