LA Industry Veteran Predicts Compass-Anywhere Deal is Just the Beginning of a Larger Strategy to Control Commission Splits

Compass' recent $1.6 billion deal to acquire Anywhere Real Estate has been making waves in the industry, but according to one industry veteran in the high-end Los Angeles market, this is just the first move in a larger strategic plan.

The anonymous executive, who has requested to remain unnamed, believes that this deal is not just about increasing market share or eliminating competition. Instead, they suggest that Compass' ultimate goal is to create a proprietary marketplace that will give them more control over commission splits.

"I suspect this is not about creating a bigger brokerage per se because, at least for now, they’re still a relatively small player," the executive said. "This is really about creating a proprietary marketplace that gives them more control over splits."

This move comes as no surprise to those familiar with Compass' aggressive expansion tactics. The company has been acquiring smaller brokerages across the country, including Pacific Union in California and Stribling & Associates in New York, in an effort to increase their market share and establish themselves as major players in the real estate industry.

However, this latest move may be more calculated than initially thought. The executive suggests that Compass is playing the long game and this acquisition is just the first step in gaining control over commission splits.

"This is a first play in a long game for them," the executive said. "It’s not really about market share, it’s about a long-term strategy to own the marketplace."

It remains to be seen how this acquisition will play out and if Compass will be successful in their larger strategic