As the Zillow Offers wind down continues, the company has shared that more than 50 percent of it’s iBuyer inventory has sold, is under contract to sell or has reached agreement on disposition terms.
According to a company statement, Zillow Group’s Board of Directors has also authorized the repurchase of up to $750 million of its Class A common stock, Class C capital stock or a combination of both.
Zillow execs expect the net impact of the Zillow Offers wind-down—including inventory losses, operating costs and restructuring costs —to be at least cash-flow neutral, including after repaying all Zillow Offers secured debt, which was $2.9 billion as of Sept. 30, 2021.
“We are pleased with the progress of our wind-down efforts and recognize that no longer operating Zillow Offers will allow us to have a more capital-efficient balance sheet and business moving forward,” said Zillow Group co-founder and CEO Rich Barton. “With that, we see today as an opportune time to announce a share repurchase program and reduce the cash balance we built up to support Zillow Offers.”