{ "docId": "019dd923-622c-750b-8b99-74af5c9e9edb", "docSlug": "de028a1085e6", "documentTitle": "Zillow Group, Inc. (Z)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2024-03-05 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 38, "pageCount": 103, "prevPage": 37, "nextPage": 39, "slideType": "cite_precedent", "function": "cite_precedent", "density": "dense", "nDataPoints": 4, "notes": "Includes a highlighted excerpt from a news source regarding the verdict.", "elementsJson": [ "headline_text", "callout_box", "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-74af5c9e9edb/38", "deckHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-74af5c9e9edb#slide-38", "components": [ { "bbox": { "h": 0.18, "w": 0.98, "x": 0.01, "y": 0.16 }, "kind": "callout", "text": "On 10/31/23, a federal jury reached a verdict in Burnett et al. v. National Association of Realtors, et al., finding the defendants guilty of conspiring to inflate commissions paid to real estate agents. The verdict increases the likelihood that the NAR will eliminate its rule requiring cooperative compensation. In other words, home-sellers could no longer be on the hook for paying for both the listing and buyer agents' commissions. Spruce Point believes the verdict will cause a dramatic change to how home-buyers and sellers think about real estate commissions. Independent analysis suggests that the U.S.'s $100 billion home-sale commission TAM could be reduced by as much as 30%-50% due to changes that will likely be brought on by the verdict.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fb708aa2-d41a-4c04-88e8-e29935b7597e", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Independent analysis suggests that the U.S.'s $100 billion home-sale commission TAM could be reduced by as much as 30%-50% due to changes that will likely be brought on by the verdict.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f42-76f3-adc8-bc1df8fe4a32", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "TAM reduction: 30%-50%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-3f42-76f3-adc8-c7dbce18edcb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.52, "x": 0.24, "y": 0.37 }, "kind": "paragraph", "text": "Home Sellers Win $1.8 Billion After Jury Finds Conspiracy Among Realtors. The influential National Association of Realtors and several brokerages were ordered to pay damages to home sellers who said they were forced to pay excessive fees to real estate agents. It's a decision that has the potential to rewrite the entire structure of the real estate industry in the United States, lowering the cost of moving homes by reducing commissions. Under a N.A.R. rule, a home seller is required to pay commissions to the agent representing the buyer, which sellers claimed forced them to pay excessive fees to the agents. The home sellers said the brokerages collaborated with N.A.R. to enforce what is called the “cooperative compensation rule.” But under the verdict, the sellers would no longer be required to pay their buyers' agents, and agents would be free to set their own commission rates, which could be slashed in half or less. For example, a home seller with a $1 million home can now pay as much as $60,000 in agent commissions — $30,000 to their agent and $30,000 to the buyers' agent.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "947ac5b2-3745-49c9-8049-5f3ab776ac42", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Home Sellers Win $1.8 Billion After Jury Finds Conspiracy Among Realtors — Headline, WSJ article", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f42-76f3-adc8-c3fafff879a8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.23, "x": 0.01, "y": 0.97 }, "kind": "source-note", "text": "Source: NAR's response, WSJ article", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d6d3d628-63f2-4e1f-8aa2-764b9fef8ad4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.32, "y": 0.04 }, "kind": "title", "text": "Plaintiffs Triumphed In Burnett et al. v. National Association of Realtors, et al.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ab4ed262-4e33-45a3-9242-7caecc903cfe", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 50, "from": 21, "beatId": "2825f36d-3055-4526-b439-677abc0e48a8", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Evidence", "beatSlug": "evidence", "evidence": "The document presents evidence to support Spruce Point's claims, including data on Zillow's declining site traffic and revenue per visit.", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }