Major shareholders recolor – this Denver Metro Area Association of REALTORS (DMAR) and Denver South Metro Area Association of REALTORS (SMDRA) – While talks are ongoing with REcolorado management and board members to buy back stock, REcolorado has agreed to sell the company to private equity investors outside the industry, its vice chairman told HousingWire.
The board learned of the deal late last week, surprising MLS executives who had been approached by shareholders in January. These executives include President and CEO Gene Millman and Chief Operating Officer Leesa Baker.
“This was done without our knowledge, without our input, and without giving us the ability to be competitive,” said Shelly Vincent, REcolorado vice president of operations and employment brokerage. smart family in Colorado.
HousingWire has contacted DMAR and SMDRA for comment.
RE Colorado is 16th The largest MLS in the country, with 25,000 members. Vincent said relations between REALTORS shareholders and company management and boards have been tense for some time. These associations even rewrote their articles of incorporation in 2023.
So when shareholders offered to let MLS acquire their shares, “we jumped at the chance,” Vincent said. She and board chairman Mark Trenka were elected by the board to represent REcolorado in negotiations. REcolorado submitted an offer and then accepted a written counteroffer before shareholders stopped communicating in February, Vincent said.
Vincent said executives now know that the private equity firm that purchased the MLS was formed in January.
“We are working with our attorneys on the legality of this matter and the possibility of legal action,” Vincent said.
When REcolorado’s management and board of directors received a letter of intent (LOI) from a private equity firm to purchase REcolorado, the terms were modified and details regarding Millman and Baker’s severance packages were requested. Vincent said there are some questions about how long REcolorado will remain in the MLS.
“We’re one of the largest MLSs in the country. We have 25,000 subscribers, but we don’t know what’s going to happen to the SERPs (search engine results pages),” Vincent said. “Right now, with all the litigation going on, we’re trying to maintain membership. I represent 2,500 agents: What should I tell them?
