HomeServices of America CEO Gino Blefari said Thursday night his company isn’t in acquisition talks with Compass. Since then, the brokerage franchise network and Compass have been silent.
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In the wake of reports Compass is in the process of buying Berkshire Hathaway HomeServices, HomeServices of America CEO Gino Blefari on Thursday claimed no such deal is in the works.
Blefari sent his statement internally to franchisees Thursday evening, claiming “there are no discussions, negotiations, or agreements to sell HomeServices or any of its affiliated companies, and that includes Berkshire Hathaway HomeServices franchise business.”
Gino Blefari
“Moreover, no such sale is being contemplated,” Blefari continued.
Blefari’s message opened by referencing “articles published in the Wall Street Journal and elsewhere.” Those articles, which include an Inman piece, stated that Compass was in the process of acquiring BHHS. Blefari also stated that “HomeServices was not given notice of the article nor the opportunity to respond.” Inman has reached out to the Wall Street Journal, asking if the outlet did seek comment.
However, other outlets reached out to the brokerage franchise network multiple times before publishing stories Thursday. In Inman’s case, two reporters on Thursday reached out before publishing the story — and a public relations representative responded to say he was working on a statement. However, no response came.
Inman also reached out Thursday night to the email address included in Blefari’s message to franchisees.
In addition to Inman, Stephan Swanepoel — founder and chairman of consulting firm T3 Sixty, which owns Real Estate News — wrote on Facebook Thursday that he had reached out to BHHS multiple times this week but never got a response.
Friday evening, the company finally provided Inman with an emailed statement attributed to Chris Kelly, executive vice president of HomeServices of America.
“There is no pending or contemplated transaction or sale between HomeServices of America and Compass or any other party,” the statement noted. “We are fully committed to our companies, agents, employees and mortgage, title and insurance professionals – helping to empower the incredible work they do for buyers, sellers and their communities.”
Inman responded with a number of questions about the situation and will update this story with any answers the company provides.
The situation has been further complicated by the fact that Compass has refused to speak publicly about the situation and didn’t respond to Inman’s requests for comment Thursday and Friday.
Given the lack of public comment in the immediate wake of stories about the alleged deal, speculation continued mounting Friday. In agent Facebook groups, members were debating whether the deal was real. Meanwhile, industry leaders discussed the implications of the rumors. NextHome CEO James Dwiggins, for instance, posted on Facebook that “if a management team member at one of these companies was starting these rumors, they are going to be getting a knock on the door by the SEC. Pretty sure this would be deemed classic market manipulation.”
And still others weren’t convinced that nothing is happening between the companies.
“I find it hard to believe they are not at least talking,” said Tom Tognoli, who sold his Bay Area real estate company Intero to Berkshire Hathaway in 2014. “Everything is for sale at the right price. Everything except family and friends. Anybody who tells me we’re not for sale is not telling the truth.”
Update: This story was updated after publication once Inman received a statement from Chris Kelly.
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