How did the Compass-Anywhere deal get cleared so quickly?
A senior DOJ antitrust official wanted a deeper review of the merger, but got shut down after Compass went over her head, according to the Wall Street Journal.
Until this week, many industry leaders assumed that Compass's proposed $1.6 billion acquisition of Anywhere Real Estate would be tied up in antitrust review through at least the first half of 2026. The companies themselves said as much when the deal was first announced last September.
Moreover, some reactions to the deal made approval — on any timeline — seem less certain.
In December, two U.S. senators sent a letter to the Department of Justice raising concerns about potential impacts to the industry and consumers, and a separate investigative report suggested the Compass-Anywhere merger could violate antitrust rules, based on the companies' combined market share in several major metropolitan areas.
But then came the news on Jan. 7 that key regulatory hurdles had been cleared, followed by confirmation of the deal's completion two days later.
How did this happen? The Wall Street Journal reported on Jan. 9 that Compass and its legal team were able to avoid a deeper investigation of the deal by appealing to senior officials in the Department of Justice.
The head of the DOJ's antitrust division, Gail Slater, wanted to do a thorough review of the merger, according to the Journal — but Compass went over her head to the office of Deputy Attorney General Todd Blanche, who agreed that any issues could be addressed without an investigation.
Compass also called upon Trump-aligned lawyer Mike Davis, a go-to for companies facing government reviews, to help with its efforts. Davis, Compass and Anywhere declined to comment.
What the DOJ had to say: A spokeswoman for Blanche said the department "complied with its obligations" under antitrust law and that "nothing precludes the department from taking an enforcement action in the future if anticompetitive effects are found."