Another non-tech acquisition… Seems like a consolidation play at this point
Compass has acquired residential brokerage, Paragon. The San Francisco-based brokerage has 225 agents and closed $2.3 billion in sales last year.
NYC Angle: With unlimited resources, Compass continues to poach brokers from competitors in NYC to accelerate growth. This isn’t the recipe for becoming a Unicorn — the key is differentiated technology.
Why it matters: When SoftBank invested $450 million, the intention was for the money to go towards technology that will truly disrupt the industry. Simply incentivizing brokers to join by offering nice signing bonuses and higher commissions splits won’t cut it.