Major shareholders recolor – this Denver Metro Area Association of REALTORS (DMAR) and Denver South Metro Area Association of REALTORS (SMDRA) — Fired the current board of directors and announced the name of the company they will sell their shares to: MAZL, LLC., led by J. Burks.
According to a statement released by DMAR and SMDRA on Friday, their board members “signed and submitted a joint, unanimous resolution to remove all REcolorado board members from their positions and responsibilities, effective immediately. This decision and action resulted from violations of the Board’s Signed under a confidentiality obligation.
REcolorado is a multiple listing service (MLS) with 26,000 members. Board members and leadership were surprised last week when they received letters of intent from DMAR and SMDRA to sell to MAZL, as they had been in talks to acquire MLS since February. Some members of REcolorado made the sale public on Monday, seemingly leading to today’s action. Statements from DMAR and SMDRA said four of REcolorado’s 11 board members resigned in protest at the behavior of other board members over the past few days.
Statements from DMAR and SMDRA board members outlined their reasons for dismissing the remaining seven board members. “While disappointed, we have made this decision based on a serious breach of confidentiality and a signed non-disclosure agreement (NDA) by a representative of REcolorado’s board of directors. We have made this decision based on the reaction of the REcolorado board of directors over the past few days and we believe that this In the best interests of our collective membership, our long-term ownership and operating objectives.
The statement included comments from four resigning board members but did not reveal their identities. One comment said, “Leadership is ignoring that shareholders own the company and have the power to determine its ultimate course of action.” Other comments noted support for shareholders and their actions.
DMAR and SMDRA acknowledged the sale in a statement late Tuesday in an attempt to reassure their members. “Having completed our due diligence as shareholders, we are confident in the LOI and that the proposed buyer is committed to operating MLS services for the long term for our professional brokerage community and that MLS’s resources will be used to enhance the services provided to all subscribers, And the company will not be resold.
In a statement released Wednesday night, recolor The board is warning Denver-area real estate agents that outside ownership of local MLSs could create more uncertainty. While the statement expressed support for decoupling local MLSs from DMAR and SMDRA, the MLS expressed opposition to the associations selling them to outside private equity firms.
“We disagree with their approach and are committed to making REcolorado a broker-focused business partner and will continue to pursue all options to ensure your MLS remains a locally owned organization for you,” the statement said. and operate in the best interests of your clients.
new buyer
Today’s statement from DMAR and SMDRA described the new buyer, Burks, as “a leader in the real estate industry for over 40 years.” His company, MAZL, is “a private company formed specifically to obtain MLS services.”
“With the change in ownership, our commitment to delivering a broker-centric platform remains strong,” Burks said in the statement. “We assure our subscribers that REcolorado will continue to operate as a multiple listing service, maintaining its commitment to Core to our mission of providing superior data, tools and resources to real estate agents and licensees, we are committed to ensuring that the MLS remains a trusted, broker-focused, true partner to our subscribers.
The sales price and timetable for closing the deal were not disclosed.
