| |
Delaware
(State or other jurisdiction of
incorporation or organization) |
| |
7370
(Primary Standard Industrial
Classification Code Number) |
| |
84-4946470
(I.R.S. Employer
Identification No.) |
|
| |
Scott A. Barshay, Esq.
John C. Kennedy, Esq. Laura Turano, Esq. Christodoulos Kaoutzanis, Esq. Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas New York, NY 10019-6064 (212) 373-3000 |
| |
Glenn Kelman
Chief Executive Officer Redfin Corporation 1099 Stewart Street, Suite 600 Seattle, WA 98101 (206) 576-8610 |
| |
Alan C. Smith, Esq.
David K. Michaels, Esq. Katherine K. Duncan, Esq. Chelsea Anderson, Esq. Christopher Gorman, Esq. Fenwick & West LLP 401 Union Street, 5th Floor Seattle, WA 98101 (206) 389-4510 |
|
| |
Large accelerated filer
☒
|
| |
Accelerated filer
☐
|
|
| |
Non-accelerated filer
☐
|
| |
Smaller reporting company
☐
|
|
| | | | |
Emerging growth company
☐
|
|
| | | | | | 1 | | | |
| | | | | | 14 | | | |
| | | | | | 14 | | | |
| | | | | | 15 | | | |
| | | | | | 15 | | | |
| | | | | | 16 | | | |
| | | | | | 16 | | | |
| | | | | | 17 | | | |
| | | | | | 17 | | | |
| | | | | | 20 | | | |
| | | | | | 22 | | | |
| | | | | | 22 | | | |
| | | | | | 22 | | | |
| | | | | | 22 | | | |
| | | | | | 22 | | | |
| | | | | | 23 | | | |
| | | | | | 23 | | | |
| | | | | | 24 | | | |
| | | | | | 24 | | | |
| | | | | | 24 | | | |
| | | | | | 25 | | | |
| | | | | | 27 | | | |
| | | | | | 27 | | | |
| | | | | | 34 | | | |
| | | | | | 36 | | | |
| | | | | | 37 | | | |
| | | | | | 38 | | | |
| | | | | | 38 | | | |
| | | | | | 39 | | | |
| | | | | | 39 | | | |
| | | | | | 39 | | | |
| | | | | | 49 | | | |
| | | | | | 52 | | | |
| | | | | | 54 | | | |
| | | | | | 60 | | | |
| | | | | | 65 | | | |
| | | | | | 66 | | | |
| | | | | | 67 | | | |
| | | | | | 67 | | | |
| | | | | | 68 | | | |
| | | | | | 68 | | |
| | | | | | 68 | | | |
| | | | | | 68 | | | |
| | | | | | 68 | | | |
| | | | | | 69 | | | |
| | | | | | 69 | | | |
| | | | | | 70 | | | |
| | | | | | 70 | | | |
| | | | | | 71 | | | |
| | | | | | 74 | | | |
| | | | | | 76 | | | |
| | | | | | 78 | | | |
| | | | | | 78 | | | |
| | | | | | 79 | | | |
| | | | | | 79 | | | |
| | | | | | 80 | | | |
| | | | | | 81 | | | |
| | | | | | 82 | | | |
| | | | | | 83 | | | |
| | | | | | 83 | | | |
| | | | | | 86 | | | |
| | | | | | 87 | | | |
| | | | | | 87 | | | |
| | | | | | 87 | | | |
| | | | | | 88 | | | |
| | | | | | 91 | | | |
| | | | | | 94 | | | |
| | | | | | 110 | | | |
| | | | | | 111 | | | |
| | | | | | 111 | | | |
| | | | | | 111 | | | |
| | | | | | 111 | | | |
| | | | | | 111 | | | |
| | | | | | 111 | | | |
| | | | | | 112 | | | |
| | | | | | 112 | | | |
| | | | | | 112 | | | |
| | | | | | 112 | | | |
| | | | | | 112 | | | |
| | | | | | 113 | | | |
| | | | | | 113 | | | |
| | | | | | 113 | | | |
| | | | | | 114 | | | |
| | | | | | 114 | | | |
| | | | | | 114 | | |
| | | | | | 114 | | | |
| | | | | | 115 | | | |
| | | | | | 115 | | | |
| | | | | | 116 | | | |
| | | | | | 116 | | | |
| | | | | | 116 | | | |
| | | | | | 117 | | | |
| | | | | | 118 | | | |
| | | | | | 119 | | | |
| | | | | | 121 | | | |
| | | | | | 122 | | | |
| | | | | | 124 | | | |
| | | | | | 124 | | | |
| | | | | | 125 | | | |
| | | | | | 127 | | | |
| | | | | | 127 | | | |
| | | | | | 128 | | | |
| | | | | | 130 | | | |
| | | | | | 130 | | | |
| | | | | | 130 | | | |
| | | | | | 130 | | | |
| | | | | | 132 | | | |
| | | | | | 132 | | | |
| | | | | | 133 | | | |
| | | | | | 133 | | | |
| | | | | | 134 | | | |
| | | | | | 147 | | | |
| | | | | | 148 | | | |
| | | | | | 148 | | | |
| | | | | | 148 | | | |
| | | | | | 148 | | | |
| | | | | | 149 | | | |
| | | | | | 150 | | | |
| | | | | | 151 | | | |
| | | | | | 151 | | | |
| | | | | | 151 | | | |
| | | | | | 151 | | | |
| | | | | | 153 | | | |
| | | | | | A-1 | | | |
| | | | | | B-1 | | | |
| | | | | | C-1 | | | |
| | | | | | D-1 | | |
| | | |
Rocket Class A
Common Stock |
| |
Redfin
Common Stock |
| |
Implied Per Share
Value of Merger Consideration |
| |||||||||
|
March 7, 2025
|
| | | $ | 15.77 | | | | | $ | 5.82 | | | | | $ | 12.50 | | |
|
[ ], 2025
|
| | | $ | [ ] | | | | | $ | [ ] | | | | | $ | [ ] | | |
| | | |
FY2025
|
| |
FY2026
|
| |
FY2027
|
| |
FY2028
|
| |
FY2029
|
| |
FY2030
|
| |
FY2031
|
| |
FY2032
|
| |
FY2033
|
| |
FY2034
|
| |
FY2035
|
| |||||||||||||||||||||||||||||||||
|
Revenue
|
| | | $ | 1,097 | | | | | $ | 1,219 | | | | | $ | 1,468 | | | | | $ | 1,634 | | | | | $ | 1,818 | | | | | $ | 2,018 | | | | | $ | 2,220 | | | | | $ | 2,420 | | | | | $ | 2,614 | | | | | $ | 2,771 | | | | | $ | 2,937 | | |
|
Gross Profit
|
| | | | 398 | | | | | | 471 | | | | | | 577 | | | | | | 654 | | | | | | 741 | | | | | | 823 | | | | | | 905 | | | | | | 987 | | | | | | 1,066 | | | | | | 1,130 | | | | | | 1,198 | | |
|
Non-GAAP EBITDA(1)
|
| | | | 11 | | | | | | 95 | | | | | | 181 | | | | | | 237 | | | | | | 303 | | | | | | 380 | | | | | | 466 | | | | | | 561 | | | | | | 662 | | | | | | 762 | | | | | | 808 | | |
|
Unlevered Free Cash Flow(2)
|
| | | | (67) | | | | | | 14 | | | | | | 80 | | | | | | 123 | | | | | | 173 | | | | | | 227 | | | | | | 288 | | | | | | 356 | | | | | | 430 | | | | | | 503 | | | | | | 534 | | |
|
Name
|
| |
Position
|
|
| Glenn Kelman | | | Chief Executive Officer | |
| Chris Nielsen | | | Chief Financial Officer | |
| Bridget Frey | | | Chief Technology Officer | |
| Anthony Kappus | | | Chief of Legal Affairs and Digital Revenue | |
| Christian Taubman | | | Chief Growth Officer | |
| Anna Stevens | | | Chief Human Resources Officer | |
| Jason Aleem* | | | Chief of Real Estate Services | |
|
Name
|
| | | |
| David Lissy | | | | |
| Robert Bass | | | | |
| Julie Bornstein | | | | |
| Kerry D. Chandler | | | | |
| Austin Ligon | | | | |
| Brad Singer | | | | |
| James Slavet | | | | |
| Selina Tobaccowala | | | | |
| | | |
Redfin Stock
Options |
| |
Redfin RSUs
|
| |
Redfin PSUs
|
| |||||||||||||||||||||
|
Name
|
| |
Vested
Redfin Options (#) |
| |
Vested
Redfin RSUs (#)* |
| |
Unvested
Redfin RSUs (#) |
| |
Vested
Redfin PSU (#) |
| |
Unvested
Redfin PSUs (#) |
| |||||||||||||||
| Executive Officers: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Glenn Kelman
|
| | | | 802,824 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Chris Nielsen
|
| | | | 249,999 | | | | | | — | | | | | | 96,375 | | | | | | — | | | | | | 273,073 | | |
|
Bridget Frey
|
| | | | 167,781 | | | | | | — | | | | | | 92,095 | | | | | | — | | | | | | 273,073 | | |
|
Anthony Kappus
|
| | | | 38,143 | | | | | | — | | | | | | 74,917 | | | | | | — | | | | | | 218,457 | | |
|
Christian Taubman
|
| | | | 23,903 | | | | | | — | | | | | | 90,755 | | | | | | — | | | | | | 273,466 | | |
|
Anna Stevens
|
| | | | — | | | | | | — | | | | | | 74,807 | | | | | | — | | | | | | 272,402 | | |
|
Jason Aleem
|
| | | | — | | | | | | — | | | | | | 64,628 | | | | | | — | | | | | | 170,109 | | |
| Non-Employee Directors: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
David Lissy
|
| | | | — | | | | | | 44,795 | | | | | | 29,275 | | | | | | — | | | | | | — | | |
|
Robert Bass
|
| | | | 66,666 | | | | | | — | | | | | | 25,423 | | | | | | — | | | | | | — | | |
|
Julie Bornstein
|
| | | | 20,000 | | | | | | — | | | | | | 25,423 | | | | | | — | | | | | | — | | |
|
Kerry D. Chandler
|
| | | | — | | | | | | — | | | | | | 25,423 | | | | | | — | | | | | | — | | |
|
Austin Ligon
|
| | | | 37,567 | | | | | | 26,062 | | | | | | 25,423 | | | | | | — | | | | | | — | | |
|
Brad Singer
|
| | | | — | | | | | | 16,819 | | | | | | 25,423 | | | | | | — | | | | | | — | | |
|
James Slavet
|
| | | | — | | | | | | 3,767 | | | | | | 25,423 | | | | | | — | | | | | | — | | |
|
Selina Tobaccowala
|
| | | | — | | | | | | — | | | | | | 25,423 | | | | | | — | | | | | | — | | |
|
Name
|
| |
Cash ($)(1)
|
| |
Equity
Awards ($)(2) |
| |
Health
Insurance Premiums ($)(3) |
| |
Total ($)
|
| ||||||||||||
|
Glenn Kelman
|
| | | | 150,000 | | | | | | — | | | | | | 5,906 | | | | | | 155,906 | | |
|
Chris Nielsen
|
| | | | 360,000 | | | | | | 3,896,200 | | | | | | 18,155 | | | | | | 4,274,355 | | |
|
Bridget Frey
|
| | | | 225,000 | | | | | | 3,851,063 | | | | | | 11,346 | | | | | | 4,087,409 | | |
|
Anthony Kappus
|
| | | | 435,000 | | | | | | 3,093,929 | | | | | | 18,155 | | | | | | 3,547,084 | | |
|
Christian Taubman
|
| | | | 225,000 | | | | | | 3,900,350 | | | | | | 16,754 | | | | | | 4,142,104 | | |
|
Name
|
| |
Base
Salary Severance ($) |
| |
Transaction
Bonus ($) |
| |
Total ($)
|
| |||||||||
|
Glenn Kelman
|
| | | | 150,000 | | | | | | — | | | | | | 150,000 | | |
|
Chris Nielsen
|
| | | | 250,000 | | | | | | 110,000 | | | | | | 360,000 | | |
|
Bridget Frey
|
| | | | 225,000 | | | | | | — | | | | | | 225,000 | | |
|
Anthony Kappus
|
| | | | 220,000 | | | | | | 215,000 | | | | | | 435,000 | | |
|
Christian Taubman
|
| | | | 225,000 | | | | | | — | | | | | | 225,000 | | |
|
Name
|
| |
Estimated
Value of Accelerating Unvested Redfin RSUs ($) |
| |
Estimated
Value of Accelerating Unvested Redfin PSUs ($) |
| |
Total ($)
|
| |||||||||
|
Glenn Kelman
|
| | | | — | | | | | | — | | | | | | — | | |
|
Chris Nielsen
|
| | | | 1,016,371 | | | | | | 2,879,829 | | | | | | 3,896,200 | | |
|
Bridget Frey
|
| | | | 971,234 | | | | | | 2,879,829 | | | | | | 3,851,063 | | |
|
Anthony Kappus
|
| | | | 790,075 | | | | | | 2,303,854 | | | | | | 3,093,929 | | |
|
Christian Taubman
|
| | | | 1,016,371 | | | | | | 2,883,979 | | | | | | 3,900,350 | | |
| | | |
Rocket
Reclassified |
| |
Up-C Collapse
|
| |
(Note 2)
|
| |
Pro Forma
Rocket for Up-C Collapse |
| |
Redfin
Reclassified (Note 3) |
| |
Redfin
Transaction Accounting Adjustments |
| |
(Note 5)
|
| |
Pro Forma
Adjusted for Redfin Merger |
| |
Mr. Cooper
Reclassified (Note 7) |
| |
Mr. Cooper
Financing Adjustments (Note 9) |
| |
Mr. Cooper
Transaction Accounting Adjustments |
| |
(Note 10)
|
| |
Rocket
Pro Forma Combined |
| ||||||||||||||||||||||||||||||
| Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 1,272,853 | | | | | $ | (117,773) | | | |
(a)(b)
|
| | | $ | 1,155,080 | | | | | $ | 124,743 | | | | | $ | (262,775) | | | |
(a)(b)
|
| | | $ | 1,017,048 | | | | | $ | | | | | $ | | | | | $ | | | |
|
| | | $ | | | ||||
|
Restricted cash
|
| | | | 16,468 | | | | | | — | | | | | | | | | 16,468 | | | | | | 229 | | | | | | — | | | | | | | | | 16,697 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Mortgage loans held for sale, at fair
value |
| | | | 9,020,176 | | | | | | — | | | | | | | | | 9,020,176 | | | | | | 152,426 | | | | | | — | | | | | | | | | 9,172,602 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest rate lock commitments (“IRLCs”), at fair value
|
| | | | 103,101 | | | | | | — | | | | | | | | | 103,101 | | | | | | 3,961 | | | | | | — | | | | | | | | | 107,062 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Mortgage servicing rights (“MSRs”), at fair value
|
| | | | 7,633,371 | | | | | | — | | | | | | | | | 7,633,371 | | | | | | 2,736 | | | | | | — | | | | | | | | | 7,636,107 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Notes receivable and due from
affiliates |
| | | | 14,245 | | | | | | 1,092 | | | |
(a)
|
| | | | 15,337 | | | | | | — | | | | | | — | | | | | | | | | 15,337 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Property and equipment, net
|
| | | | 213,848 | | | | | | 139 | | | |
(a)
|
| | | | 213,987 | | | | | | 41,302 | | | | | | — | | | | | | | | | 255,289 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Deferred tax asset, net
|
| | | | 521,824 | | | | | | (521,824) | | | |
(c)
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Lease right of use assets
|
| | | | 281,770 | | | | | | — | | | | | | | | | 281,770 | | | | | | 23,713 | | | | | | — | | | | | | | | | 305,483 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Forward commitments, at fair value
|
| | | | 89,332 | | | | | | — | | | | | | | | | 89,332 | | | | | | 462 | | | | | | — | | | | | | | | | 89,794 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans subject to repurchase right from
Ginnie Mae |
| | | | 2,785,146 | | | | | | — | | | | | | | | | 2,785,146 | | | | | | — | | | | | | — | | | | | | | | | 2,785,146 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Goodwill and intangible assets, net
|
| | | | 1,227,517 | | | | | | — | | | | | | | | | 1,227,517 | | | | | | 560,892 | | | | | | 1,335,366 | | | |
(c)(d)
|
| | | | 3,123,775 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Other assets
|
| | | | 1,330,412 | | | | | | 12,121 | | | |
(a)(c)
|
| | | | 1,342,533 | | | | | | 101,993 | | | | | | — | | | | | | | | | 1,444,526 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total assets
|
| | | $ | 24,510,063 | | | | | $ | (626,245) | | | | | | | | $ | 23,883,818 | | | | | $ | 1,012,457 | | | | | $ | 1,072,591 | | | | | | | | $ | 25,968,866 | | | | | $ | | | | | $ | | | | | $ | | | | | | | | $ | | | | |||
| Liabilities and equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Funding facilities
|
| | | $ | 6,708,186 | | | | | $ | — | | | | | | | | $ | 6,708,186 | | | | | $ | 146,629 | | | | | $ | — | | | | | | | | $ | 6,854,815 | | | | | $ | | | | | $ | | | | | $ | | | | | | | | $ | | | ||||
| Other financing facilities and debt: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Senior Notes, net
|
| | | | 4,038,926 | | | | | | — | | | | | | | | | 4,038,926 | | | | | | 572,207 | | | | | | (61,901) | | | |
(e)
|
| | | | 4,549,232 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Early buy out facility
|
| | | | 92,949 | | | | | | — | | | | | | | | | 92,949 | | | | | | — | | | | | | — | | | | | | | | | 92,949 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Term loan debt
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | | 243,344 | | | | | | (243,344) | | | |
(a)
|
| | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Accounts payable
|
| | | | 181,713 | | | | | | 111 | | | |
(a)
|
| | | | 181,824 | | | | | | 17,004 | | | | | | — | | | | | | | | | 198,828 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Rocket
Reclassified |
| |
Up-C Collapse
|
| |
(Note 2)
|
| |
Pro Forma
Rocket for Up-C Collapse |
| |
Redfin
Reclassified (Note 3) |
| |
Redfin
Transaction Accounting Adjustments |
| |
(Note 5)
|
| |
Pro Forma
Adjusted for Redfin Merger |
| |
Mr. Cooper
Reclassified (Note 7) |
| |
Mr. Cooper
Financing Adjustments (Note 9) |
| |
Mr. Cooper
Transaction Accounting Adjustments |
| |
(Note 10)
|
| |
Rocket
Pro Forma Combined |
| ||||||||||||||||||||||||||||||
|
Lease liabilities
|
| | | | 319,296 | | | | | | — | | | | | | | | | 319,296 | | | | | | 32,717 | | | | | | — | | | | | | | | | 352,013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Forward commitments, at fair value
|
| | | | 11,209 | | | | | | — | | | | | | | | | 11,209 | | | | | | 873 | | | | | | — | | | | | | | | | 12,082 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Investor reserves
|
| | | | 99,998 | | | | | | — | | | | | | | | | 99,998 | | | | | | 2,408 | | | | | | — | | | | | | | | | 102,406 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Notes payable and due to affiliates
|
| | | | 31,280 | | | | | | 14 | | | |
(a)
|
| | | | 31,294 | | | | | | — | | | | | | — | | | | | | | | | 31,294 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Tax receivable agreement liability
|
| | | | 581,183 | | | | | | (15,601) | | | |
(d)
|
| | | | 565,582 | | | | | | — | | | | | | 6,461 | | | |
(f)
|
| | | | 572,043 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loans subject to repurchase right from
Ginnie Mae |
| | | | 2,785,146 | | | | | | — | | | | | | | | | 2,785,146 | | | | | | — | | | | | | — | | | | | | | | | 2,785,146 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Deferred tax liability, net
|
| | | | 17,445 | | | | | | 758,633 | | | |
(c)
|
| | | | 776,078 | | | | | | 672 | | | | | | (20,101) | | | |
(f)(g)
|
| | | | 756,649 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Other liabilities
|
| | | | 599,352 | | | | | | 34,480 | | | |
(a)(e)(f)
|
| | | | 633,832 | | | | | | 79,271 | | | | | | 22,980 | | | |
(h)
|
| | | | 736,083 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total liabilities
|
| | | $ | 15,466,683 | | | | | $ | 777,637 | | | | | | | | $ | 16,244,320 | | | | | $ | 1,095,125 | | | | | $ | (295,905) | | | | | | | | $ | 17,043,540 | | | | | $ | | | | | $ | | | | | $ | | | | | | | | $ | | | ||||
| Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Class A common stock
|
| | | $ | 1 | | | | | $ | — | | | | | | | | $ | 1 | | | | | $ | 126 | | | | | $ | (125) | | | |
(i)
|
| | | $ | 2 | | | | | $ | | | | | $ | | | | | $ | | | | | | | | $ | | | ||||
|
Class B common stock
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Class C common stock
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Class D common stock
|
| | | | 19 | | | | | | (19) | | | |
(h)
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Class L common stock
|
| | | | — | | | | | | 19 | | | |
(h)
|
| | | | 19 | | | | | | — | | | | | | — | | | | | | | | | 19 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Additional paid-in-capital
|
| | | | 389,695 | | | | | | 7,064,631 | | | |
(h)
|
| | | | 7,454,326 | | | | | | 905,506 | | | | | | 415,520 | | | |
(i)
|
| | | | 8,775,352 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Retained earnings
|
| | | | 312,834 | | | | | | (127,206) | | | |
(h)
|
| | | | 185,628 | | | | | | (988,134) | | | | | | 952,935 | | | |
(i)
|
| | | | 150,429 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Accumulated other comprehensive income (loss)
|
| | | | (48) | | | | | | — | | | | | | | | | (48) | | | | | | (166) | | | | | | 166 | | | |
(i)
|
| | | | (48) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Non-controlling interest
|
| | | | 8,340,879 | | | | | | (8,341,307) | | | |
(g)
|
| | | | (428) | | | | | | — | | | | | | — | | | | | | | | | (428) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total equity
|
| | | | 9,043,380 | | | | | | (1,403,882) | | | | | | | | | 7,639,498 | | | | | | (82,668) | | | | | | 1,368,496 | | | | | | | | | 8,925,326 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total liabilities and equity
|
| | | $ | 24,510,063 | | | | | $ | (626,245) | | | | | | | | $ | 23,883,818 | | | | | $ | 1,012,457 | | | | | $ | 1,072,591 | | | | | | | | $ | 25,968,866 | | | | | $ | | | | | $ | | | | | $ | | | | | | | | $ | | | | |||
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | |
Rocket
Reclassified (Note 3) |
| |
Up-C Collapse
|
| |
(Note 2)
|
| |
Pro Forma
Rocket for Up-C Collapse |
| |
Redfin
Reclassified (Note 3) |
| |
Redfin
Transaction Accounting Adjustments |
| |
(Note 5)
|
| |
Pro Forma
Adjusted for Redfin Merger |
| |
Mr. Cooper
Reclassified (Note 7) |
| |
Mr. Cooper
Financing Adjustments (Note 9) |
| |
Mr. Cooper
Transaction Accounting Adjustments |
| |
(Note 10)
|
| |
Rocket
Pro Forma Combined |
| ||||||||||||||||||||||||||||||
| Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gain on sale of loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Gain on sale of loans excluding fair value of MSRs, net
|
| | | $ | 1,682,697 | | | | | $ | — | | | | | | | | $ | 1,682,697 | | | | | $ | 102,363 | | | | | $ | — | | | | | | | | $ | 1,785,060 | | | | | $ | | | | | $ | | | | | $ | | | | | | | | $ | | | ||||
|
Fair value of originated MSRs
|
| | | | 1,330,216 | | | | | | — | | | | | | | | | 1,330,216 | | | | | | 26,489 | | | | | | — | | | | | | | | | 1,356,705 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Gain on sale of loans, net
|
| | | | 3,012,913 | | | | | | — | | | | | | | | | 3,012,913 | | | | | | 128,852 | | | | | | — | | | | | | | | | 3,141,765 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loan servicing income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Servicing fee income
|
| | | | 1,462,173 | | | | | | — | | | | | | | | | 1,462,173 | | | | | | 2,146 | | | | | | — | | | | | | | | | 1,464,319 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Change in fair value of MSRs
|
| | | | (578,681) | | | | | | — | | | | | | | | | (578,681) | | | | | | (2,375) | | | | | | — | | | | | | | | | (581,056) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loan servicing income, net
|
| | | | 883,492 | | | | | | — | | | | | | | | | 883,492 | | | | | | (229) | | | | | | — | | | | | | | | | 883,263 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest income
|
| | | | 413,159 | | | | | | — | | | | | | | | | 413,159 | | | | | | 10,980 | | | | | | — | | | | | | | | | 424,139 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest expense on funding facilities
|
| | | | (315,593) | | | | | | — | | | | | | | | | (315,593) | | | | | | (11,226) | | | | | | — | | | | | | | | | (326,819) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest income, net
|
| | | | 97,566 | | | | | | — | | | | | | | | | 97,566 | | | | | | (246) | | | | | | — | | | | | | | | | 97,320 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Real estate services
|
| | | | 53,305 | | | | | | — | | | | | | | | | 53,305 | | | | | | 642,867 | | | | | | — | | | | | | | | | 696,172 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Other income
|
| | | | 1,053,522 | | | | | | 6,513 | | | |
(a)
|
| | | | 1,060,035 | | | | | | 267,326 | | | | | | — | | | | | | | | | 1,327,361 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total revenue, net
|
| | | | 5,100,798 | | | | | | 6,513 | | | | | | | | | 5,107,311 | | | | | | 1,038,570 | | | | | | — | | | | | | | | | 6,145,881 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Salaries, commissions, and team
member benefits |
| | | | 2,261,245 | | | | | | 4,113 | | | |
(a)
|
| | | | 2,265,358 | | | | | | 768,938 | | | | | | (17,983) | | | |
(j)
|
| | | | 3,016,313 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
General and administrative expenses
|
| | | | 893,154 | | | | | | 11,190 | | | |
(a)(f)
|
| | | | 904,344 | | | | | | 237,267 | | | | | | 22,980 | | | |
(h)
|
| | | | 1,164,591 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Marketing and advertising expenses
|
| | | | 824,042 | | | | | | 40 | | | |
(a)
|
| | | | 824,082 | | | | | | 119,816 | | | | | | — | | | | | | | | | 943,898 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Rocket
Reclassified (Note 3) |
| |
Up-C Collapse
|
| |
(Note 2)
|
| |
Pro Forma
Rocket for Up-C Collapse |
| |
Redfin
Reclassified (Note 3) |
| |
Redfin
Transaction Accounting Adjustments |
| |
(Note 5)
|
| |
Pro Forma
Adjusted for Redfin Merger |
| |
Mr. Cooper
Reclassified (Note 7) |
| |
Mr. Cooper
Financing Adjustments (Note 9) |
| |
Mr. Cooper
Transaction Accounting Adjustments |
| |
(Note 10)
|
| |
Rocket
Pro Forma Combined |
| ||||||||||||||||||||||||||||||
|
Depreciation and
amortization |
| | | | 112,917 | | | | | | 59 | | | |
(a)
|
| | | | 112,976 | | | | | | 42,834 | | | | | | 139,295 | | | |
(d)
|
| | | | 295,105 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest and amortization expense on non-funding
debt |
| | | | 153,637 | | | | | | — | | | | | | | | | 153,637 | | | | | | 27,707 | | | | | | 12,708 | | | |
(e)
|
| | | | 194,052 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Other expense
|
| | | | 187,751 | | | | | | (15,601) | | | |
(d)
|
| | | | 172,150 | | | | | | 7,339 | | | | | | 6,461 | | | |
(f)
|
| | | | 185,950 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total expenses
|
| | | | 4,432,746 | | | | | | (199) | | | | | | | | | 4,432,547 | | | | | | 1,203,901 | | | | | | 163,461 | | | | | | | | | 5,799,909 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Income (loss) before income taxes
|
| | | | 668,052 | | | | | | 6,712 | | | | | | | | | 674,764 | | | | | | (165,331) | | | | | | (163,461) | | | | | | | | | 345,972 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(Provision for) benefit from income taxes
|
| | | | (32,224) | | | | | | (129,720) | | | |
(i)
|
| | | | (161,944) | | | | | | 530 | | | | | | 72,622 | | | |
(f)(k)
|
| | | | (88,792) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net income (loss)
|
| | | | 635,828 | | | | | | (123,008) | | | | | | | | | 512,820 | | | | | | (164,801) | | | | | | (90,839) | | | | | | | | | 257,180 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net (income) loss attributable to non-controlling interest
|
| | | | (606,458) | | | | | | 607,509 | | | |
(g)
|
| | | | 1,051 | | | | | | — | | | | | | — | | | | | | | | | 1,051 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Net income (loss) attributable to Rocket Companies
|
| | | $ | 29,370 | | | | | $ | 484,501 | | | | | | | | $ | 513,871 | | | | | $ | (164,801) | | | | | $ | (90,839) | | | | | | | | $ | 258,231 | | | | | $ | | | | | $ | | | | | $ | | | | | | | | $ | | | ||||
|
Earnings (loss) per share of Class A common stock
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Note (6) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | $ | 0.21 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.05 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted
|
| | | $ | 0.21 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.05 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Weighted average shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | | 141,037,083 | | | | | | 1,848,879,483 | | | | | | | | | | | | | | | | | | | | | 101,283,994 | | | | | | | | | 2,091,200,560 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Diluted
|
| | | | 141,037,083 | | | | | | 1,857,291,757 | | | | | | | | | | | | | | | | | | | | | 112,459,103 | | | | | | | | | 2,110,787,943 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Additional
paid-in capital |
| |
Retained
earnings |
| |
Non-controlling
interest |
| |||||||||
| Pro forma Up-Collapse adjustments: | | | | | | | | | | | | | | | | | | | |
|
(a)
Consolidation of net assets and operations of the Retained Entities
|
| | | $ | 2,024 | | | | | $ | — | | | | | $ | — | | |
|
(b)
Special Dividend payment
|
| | | | — | | | | | | (120,120) | | | | | | — | | |
|
(c)
Reversal of the DTA and recognition of DTL
|
| | | | (1,278,700) | | | | | | 10,080 | | | | | | — | | |
|
(d)
Change in the TRA liability
|
| | | | — | | | | | | 15,601 | | | | | | — | | |
|
(e)
Dividend equivalents payable to holders of unvested RSUs
|
| | | | — | | | | | | (24,102) | | | | | | — | | |
|
(f)
Expected non-recurring acquisition-related transaction costs
|
| | | | — | | | | | | (8,665) | | | | | | — | | |
|
(g)
Elimination of noncontrolling interest(1)
|
| | | | 8,341,307 | | | | | | — | | | | | | (8,341,307) | | |
|
Net pro forma transaction accounting adjustments to Equity:
|
| | | $ | 7,064,631 | | | | | $ | (127,206) | | | | | $ | (8,341,307) | | |
|
Redfin Historical Balance Sheet Line Items
|
| |
Redfin Historical
as of December 31, 2024 |
| |
Reclassification
|
| |
Rocket Historical Balance Sheet
Line Items(1) |
| |
Reclassification
|
| |
Redfin
Reclassified as of December 31, 2024 |
| ||||||||||||
|
Cash and cash equivalents
|
| | | | 124,743 | | | | | | — | | | |
Cash and cash equivalents
|
| | | | | | | | | | 124,743 | | |
|
Restricted cash
|
| | | | 229 | | | | | | — | | | |
Restricted cash
|
| | | | | | | | | | 229 | | |
|
Accounts receivable, net of allowance for
credit losses |
| | | | 48,730 | | | | | | (48,730) | | | |
Mortgage loans held for sale, at fair value
|
| | | | | | | | | | 152,426 | | |
|
Loans held for sale
|
| | | | 152,426 | | | | | | — | | | |
IRLCs, at fair value
|
| | | | | | | | | | 3,961 | | |
|
Prepaid expenses
|
| | | | 26,853 | | | | | | (26,853) | | | |
Other current assets
|
| | | | 3,961 | | | | | | | | |
|
Other current assets
|
| | | | 22,457 | | | | | | (22,457) | | | |
Accrued and other liabilities
|
| | | | | | | | | | | | |
|
Total current assets
|
| | | | 375,438 | | | | | | — | | | |
MSRs, at fair value
|
| | | | | | | | | | 2,736 | | |
|
Property and equipment, net
|
| | | | 41,302 | | | | | | — | | | |
Property and equipment, net
|
| | | | | | | | | | 41,302 | | |
|
Right-of-use assets, net
|
| | | | 23,713 | | | | | | — | | | |
Lease right of use assets
|
| | | | | | | | | | 23,713 | | |
|
MSRs, at fair value
|
| | | | 2,736 | | | | | | — | | | |
Forward commitments, at fair
value |
| | | | | | | | | | 462 | | |
|
Goodwill
|
| | | | 461,349 | | | | | | (461,349) | | | |
Other current assets
|
| | | | 462 | | | | | | | | |
|
Intangible assets, net
|
| | | | 99,543 | | | | | | (99,543) | | | |
Goodwill and intangible assets, net
|
| | | | | | | | | | 560,892 | | |
|
Other assets, noncurrent
|
| | | | 8,376 | | | | | | (8,376) | | | |
Goodwill
|
| | | | 461,349 | | | | | | | | |
|
Total assets
|
| | | | 1,012,457 | | | | | | — | | | |
Intangible assets, net
|
| | | | 99,543 | | | | | | | | |
|
Accounts payable
|
| | | | 16,847 | | | | | | (16,847) | | | |
Other assets
|
| | | | | | | | | | 101,993 | | |
|
Accrued and other liabilities
|
| | | | 82,709 | | | | | | (82,709) | | | |
Accounts receivable, net of
allowances for credit losses |
| | | | 48,730 | | | | | | | | |
|
Warehouse credit facilities
|
| | | | 146,629 | | | | | | (146,629) | | | |
Other current assets
|
| | | | 18,034 | | | | | | | | |
|
Convertible senior notes, net
|
| | | | 73,516 | | | | | | (73,516) | | | |
Prepaid expenses
|
| | | | 26,853 | | | | | | | | |
|
Lease liabilities
|
| | | | 12,862 | | | | | | (12,862) | | | |
Other assets, noncurrent
|
| | | | 8,376 | | | | | | | | |
|
Total current liabilities
|
| | | | 332,563 | | | | | | — | | | |
Total assets
|
| | | | | | | | | | 1,012,457 | | |
|
Lease liabilities, noncurrent
|
| | | | 19,855 | | | | | | (19,855) | | | |
Funding facilities
|
| | | | | | | | | | 146,629 | | |
|
Convertible senior notes, net,
noncurrent |
| | | | 498,691 | | | | | | (498,691) | | | |
Warehouse credit facilities
|
| | | | 146,629 | | | | | | | | |
|
Term loan
|
| | | | 243,344 | | | | | | — | | | |
Senior notes, net
|
| | | | | | | | | | 572,207 | | |
|
Deferred tax liabilities
|
| | | | 672 | | | | | | — | | | |
Convertible senior notes, net
|
| | | | 73,516 | | | | | | | | |
|
Total liabilities
|
| | | | 1,095,125 | | | | | | — | | | |
Convertible senior notes, net,
noncurrent |
| | | | 498,691 | | | | | | | | |
| | | | | | | | | | | | | | | |
Term loan debt
|
| | | | | | | | | | 243,344 | | |
| | | | | | | | | | | | | | | |
Accounts payable
|
| | | | | | | | | | 17,004 | | |
| | | | | | | | | | | | | | | |
Accounts payable
|
| | | | 16,847 | | | | | | | | |
| | | | | | | | | | | | | | | |
Accrued and other liabilities
|
| | | | 157 | | | | | | | | |
| | | | | | | | | | | | | | | |
Lease liabilities
|
| | | | | | | | | | 32,717 | | |
| | | | | | | | | | | | | | | |
Lease liabilities
|
| | | | 12,862 | | | | | | | | |
| | | | | | | | | | | | | | | |
Lease liabilities, noncurrent
|
| | | | 19,855 | | | | | | | | |
| | | | | | | | | | | | | | | |
Forward commitments, at fair
value |
| | | | | | | | | | 873 | | |
| | | | | | | | | | | | | | | |
Accrued and other liabilities
|
| | | | 873 | | | | | | | | |
| | | | | | | | | | | | | | | |
Investor reserves
|
| | | | | | | | | | 2,408 | | |
| | | | | | | | | | | | | | | |
Accrued and other liabilities
|
| | | | 2,408 | | | | | | | | |
| | | | | | | | | | | | | | | |
Deferred tax liability, net
|
| | | | | | | | | | 672 | | |
| | | | | | | | | | | | | | | |
Other liabilities
|
| | | | | | | | | | 79,271 | | |
| | | | | | | | | | | | | | | |
Accrued and other liabilities
|
| | | | 79,271 | | | | | | | | |
| | | | | | | | | | | | | | | |
Total liabilities
|
| | | | | | | | | | 1,095,125 | | |
|
Redfin Historical Statement of Loss Line Items
|
| |
Redfin
Historical for the Year Ended December 31, 2024 |
| |
Reclassification
|
| |
Rocket Historical Statement of
Loss Line Items(1) |
| |
Reclassification
|
| |
Redfin
Reclassified for the Year Ended December 31, 2024 |
| ||||||||||||
|
Revenue
|
| | | | 1,042,979 | | | | | | (1,042,979) | | | |
Gain on sale of loans excluding fair value of MSRs, net
|
| | | | — | | | | | | 102,363 | | |
|
Cost of revenue
|
| | | | 678,778 | | | | | | (678,778) | | | |
Revenue
|
| | | | 102,363 | | | | | | — | | |
|
Technology and development
|
| | | | 163,927 | | | | | | (163,927) | | | |
Fair value of originated MSRs
|
| | | | — | | | | | | 26,489 | | |
|
Marketing
|
| | | | 114,481 | | | | | | (114,481) | | | |
Revenue
|
| | | | 26,489 | | | | | | — | | |
|
General and administrative
|
| | | | 235,364 | | | | | | (235,364) | | | |
Servicing fee income
|
| | | | — | | | | | | 2,146 | | |
|
Restructuring and reorganization
|
| | | | 5,684 | | | | | | (5,684) | | | |
Revenue
|
| | | | 2,146 | | | | | | — | | |
|
Interest income
|
| | | | 6,348 | | | | | | (6,348) | | | |
Change in fair value of MSRs
|
| | | | | | | | | | (2,375) | | |
|
Interest expense
|
| | | | (27,780) | | | | | | 27,780 | | | |
Revenue
|
| | | | (2,375) | | | | | | — | | |
|
Income tax benefit
|
| | | | 530 | | | | | | (530) | | | |
Interest income
|
| | | | — | | | | | | 10,980 | | |
|
Gain on extinguishment of convertible senior notes
|
| | | | 12,000 | | | | | | (12,000) | | | |
Revenue
|
| | | | 10,980 | | | | | | — | | |
|
Other expense, net
|
| | | | (644) | | | | | | 644 | | | |
Interest expense on funding
facilities |
| | | | — | | | | | | (11,226) | | |
|
Net loss
|
| | | | (164,801) | | | | | | 164,801 | | | |
Cost of revenue
|
| | | | (11,226) | | | | | | — | | |
| | | | | | | | | | | | | | | |
Real estate services
|
| | | | — | | | | | | 642,867 | | |
| | | | | | | | | | | | | | | |
Revenue
|
| | | | 642,867 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Other income
|
| | | | — | | | | | | 267,326 | | |
| | | | | | | | | | | | | | | |
Revenue
|
| | | | 260,917 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Interest income
|
| | | | 6,348 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Other expense, net
|
| | | | 61 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Salaries, commissions, and team member benefits
|
| | | | — | | | | | | 768,938 | | |
| | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 498,761 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Technology and development
|
| | | | 107,224 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Marketing
|
| | | | 24,150 | | | | | | — | | |
| | | | | | | | | | | | | | | |
General and administrative
|
| | | | 133,141 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Restructuring and
reorganization |
| | | | 5,662 | | | | | | — | | |
| | | | | | | | | | | | | | | |
General and administrative
expenses |
| | | | — | | | | | | 237,267 | | |
| | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 117,312 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Technology and development
|
| | | | 37,364 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Marketing
|
| | | | 5,225 | | | | | | — | | |
| | | | | | | | | | | | | | | |
General and administrative
|
| | | | 77,344 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Restructuring and
reorganization |
| | | | 22 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Marketing and advertising
expenses |
| | | | — | | | | | | 119,816 | | |
| | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 33,775 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Technology and development
|
| | | | 89 | | | | | | — | | |
| | | | | | | | | | | | | | | |
Marketing
|
| | | | 84,859 | | | | | | — | | |
| | | | | | | | | | | | | | | |
General and administrative
|
| | | | 1,093 | | | | | | — | | |
|
Redfin Historical Statement of Loss Line Items
|
| |
Redfin
Historical for the Year Ended December 31, 2024 |
| |
Reclassification
|
| |
Rocket Historical Statement of
Loss Line Items(1) |
| |
Reclassification
|
| |
Redfin
Reclassified for the Year Ended December 31, 2024 |
| ||||||
| | | | | | | | | |
Depreciation and amortization
|
| | | | — | | | | | | 42,834 | | |
| | | | | | | | | |
Cost of revenue
|
| | | | 2,814 | | | | | | — | | |
| | | | | | | | | |
Technology and development
|
| | | | 19,250 | | | | | | — | | |
| | | | | | | | | |
Marketing
|
| | | | 233 | | | | | | — | | |
| | | | | | | | | |
General and administrative
|
| | | | 20,537 | | | | | | — | | |
| | | | | | | | | |
Interest and amortization expense on
non-funding debt |
| | | | — | | | | | | 27,707 | | |
| | | | | | | | | |
Interest expense
|
| | | | 27,707 | | | | | | | | |
| | | | | | | | | |
Other expenses
|
| | | | — | | | | | | 7,339 | | |
| | | | | | | | | |
Revenue
|
| | | | 408 | | | | | | — | | |
| | | | | | | | | |
Cost of revenue
|
| | | | 14,890 | | | | | | — | | |
| | | | | | | | | |
Marketing
|
| | | | 14 | | | | | | — | | |
| | | | | | | | | |
General and administrative
|
| | | | 3,249 | | | | | | — | | |
| | | | | | | | | |
Interest expense
|
| | | | 73 | | | | | | — | | |
| | | | | | | | | |
Gain on extinguishment of convertible senior notes
|
| | | | (12,000) | | | | | | — | | |
| | | | | | | | | |
Other expense, net
|
| | | | 705 | | | | | | — | | |
| | | | | | | | | |
(Provision for) benefit from income taxes
|
| | | | — | | | | | | 530 | | |
| | | | | | | | | |
Income tax benefit
|
| | | | 530 | | | | | | — | | |
| | | | | | | | | |
Net income
|
| | | | (164,801) | | | | | | (164,801) | | |
| | | |
Amount
|
| |||
|
Estimated fair value of Rocket Class A common stock to be issued to Redfin
stockholders(i) |
| | | | 1,274,153 | | |
|
Estimated fair value of converted Redfin equity awards attributable to pre-combination service(ii)
|
| | | | 46,874 | | |
|
Cash paid to pay off term loan, accrued interest, and prepayment penalty(iii)
|
| | | | 249,975 | | |
|
Estimated Redfin acquisition-related transaction costs to be paid by Rocket(iv)
|
| | | | 12,800 | | |
|
Preliminary estimated merger consideration
|
| | | $ | 1,583,802 | | |
| | | |
Stock Price
|
| |
Total Estimated
Consideration |
| |
Change
|
| |||||||||
|
10% increase
|
| | | $ | 13.84 | | | | | $ | 1,715,904 | | | | | | 132,102 | | |
|
10% decrease
|
| | | $ | 11.32 | | | | | $ | 1,451,700 | | | | | | (132,102) | | |
| | | |
Amount
|
| |||
|
Estimated Merger Consideration:
|
| | | $ | 1,583,802 | | |
|
Cash and cash equivalents
|
| | | | 124,743 | | |
|
Restricted cash
|
| | | | 229 | | |
|
Mortgage loans held for sale, at fair value
|
| | | | 152,426 | | |
|
IRLCs, at fair value
|
| | | | 3,961 | | |
|
MSRs, at fair value
|
| | | | 2,736 | | |
|
Property and equipment, net
|
| | | | 41,302 | | |
|
Lease right of use assets
|
| | | | 23,713 | | |
|
Forward commitments, at fair value
|
| | | | 462 | | |
| | | |
Amount
|
| |||
|
Intangible assets, net(i)
|
| | | | 815,000 | | |
|
Other assets
|
| | | | 101,993 | | |
|
Funding facilities
|
| | | | 146,629 | | |
|
Senior notes, net
|
| | | | 510,306 | | |
|
Accounts payable
|
| | | | 17,004 | | |
|
Lease liabilities
|
| | | | 32,717 | | |
|
Forward commitments, at fair value
|
| | | | 873 | | |
|
Investor reserves
|
| | | | 2,408 | | |
|
Deferred tax liability, net(ii)
|
| | | | (25,187) | | |
|
Other liabilities
|
| | | | 79,271 | | |
|
Net tangible assets acquired (excluding goodwill)
|
| | | | 502,544 | | |
|
Goodwill
|
| | | | 1,081,258 | | |
|
Total net assets acquired
|
| | | $ | 1,583,802 | | |
| | |||||||
| | | |
Preliminary Fair
Value |
| |
Estimated
Useful Life |
| ||||||
| Preliminary fair value of intangible assets acquired: | | | | | | | | | | | | | |
|
Trade names and trademarks
|
| | | $ | 300,000 | | | | | | 5 | | |
|
Customer relationships
|
| | | | 240,000 | | | | | | 7 | | |
|
Developed technology
|
| | | | 275,000 | | | | | | 4 | | |
|
Intangible assets acquired
|
| | | $ | 815,000 | | | | | | | | |
| | | |
For the Year Ended
December 31, 2024 |
| |||
| Pro forma transaction accounting adjustments: | | | | | | | |
|
Removal of historical Redfin amortization of intangible assets
|
| | | $ | (23,741) | | |
|
Amortization of intangible assets
|
| | | | 163,036 | | |
| | | |
For the Year Ended
December 31, 2024 |
| |||
| Pro forma transaction accounting adjustments: | | | | | | | |
|
Removal of historical interest expense(1)
|
| | | $ | (27,707) | | |
|
Pro forma interest expense
|
| | | | 40,415 | | |
| | | |
Class A
common stock |
| |
Additional
paid-in capital |
| |
Retained
earnings |
| |
Accumulated other
comprehensive loss |
| ||||||||||||
|
Pro forma transaction accounting adjustments:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Elimination of Redfin’s historical equity
|
| | | $ | (126) | | | | | $ | (905,506) | | | | | $ | 988,134 | | | | | $ | 166 | | |
|
Rocket Class A common stock issued to Redfin stockholders – See Note 4
|
| | | | 1 | | | | | | 1,274,152 | | | | | | — | | | | | | — | | |
|
Estimated fair value attributed to pre-
combination vesting of equity awards – See Note 4 |
| | | | — | | | | | | 46,874 | | | | | | — | | | | | | — | | |
|
Estimated acquisition-related transaction costs – See Note 5(h)
|
| | | | — | | | | | | — | | | | | | (22,980) | | | | | | — | | |
|
Change in Rocket’s TRA liability and deferred tax liability – See Note 5(f)
|
| | | | — | | | | | | — | | | | | | (12,219) | | | | | | | | |
|
Net pro forma transaction accounting adjustments to Equity
|
| | | $ | (125) | | | | | $ | 415,520 | | | | | $ | 952,935 | | | | | $ | 166 | | |
| | | |
For the Year Ended
December 31, 2024 |
| |||
| Pro forma transaction accounting adjustments: | | | | | | | |
|
Removal of historical Redfin stock-based compensation expense
|
| | | $ | (71,159) | | |
|
Record annualized stock-based compensation expense from replacement awards
|
| | | | 53,176 | | |
|
Net pro forma transaction accounting adjustment to Salaries, commissions, and team member benefits
|
| | | $ | (17,983) | | |
| | | |
For the Year Ended
December 31, 2024 |
| |||
| Numerator | | | | | | | |
|
Pro forma net income
|
| | | $ | 258,231 | | |
|
Special Dividend on Class A common stock
|
| | | | (120,120) | | |
|
Dividend equivalents on unvested Rocket share-based awards
|
| | | | (24,102) | | |
|
Pro forma net income attributable to common shareholders
|
| | |
$
|
114,009
|
| |
| Denominator(1): | | | | | | | |
|
Historical Rocket weighted average shares outstanding – basic
|
| | | | 141,037,083 | | |
|
Shares of Class L common stock from Up-C Collapse
|
| | | | 1,848,879,483 | | |
|
Shares of Class A common stock issued to Redfin stockholders
|
| | | | 101,283,994 | | |
|
Weighted average shares of common stock outstanding – basic
|
| | | | 2,091,200,560 | | |
|
Historical Rocket weighted average shares outstanding – diluted
|
| | | | 141,037,083 | | |
|
Shares of Class L common stock from Up-C Collapse
|
| | | | 1,848,879,483 | | |
|
Rocket dilutive share-based awards(2)
|
| | | | 8,412,274 | | |
|
Shares of Class A common stock issued to Redfin stockholders
|
| | | | 101,283,994 | | |
|
Rocket share-based awards issued in exchange for Redfin share-based awards(3)
|
| | | | 11,175,109 | | |
|
Weighted average shares of common stock outstanding – diluted
|
| | | | 2,110,787,943 | | |
|
Pro forma net income per share of common stock outstanding – basic
|
| | | $ | 0.05 | | |
|
Pro forma net income per share of common stock outstanding – diluted
|
| | | $ | 0.05 | | |
|
Mr. Cooper Historical Balance Sheet
Line Items |
| |
Mr. Cooper
Historical Balances as of December 31, 2024 |
| |
Reclassification
|
| |
Rocket Historical
Balance Sheet Line Items Reclassified |
| |
Reclassification
|
| |
Mr. Cooper
Reclassified as of December 31, 2024 |
|
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
|
Mr. Cooper Historical Statement of
Operations Line Items |
| |
Mr. Cooper
Historical for the Year Ended December 31, 2024 |
| |
Reclassification
|
| |
Rocket
Historical Statement of Loss Line Items |
| |
Reclassification
|
| |
Mr. Cooper
Reclassified for the Year Ended December 31, 2024 |
|
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | |
Amount
|
| |||
| | | | | | | | |
| | | | | | | | |
| | | | | $ | | | |
| | | |
Amount
|
| |||
|
Estimated Merger Consideration:
|
| | | $ | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Net tangible assets acquired (excluding goodwill) | | | | | | | |
| Goodwill | | | | | | | |
|
Total net assets acquired
|
| | | $ | | | |
| | | |
Preliminary Fair
Value |
| |
Estimated Useful Life
|
| ||||||
| Preliminary fair value of intangible assets acquired: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | ||
|
Intangible assets acquired
|
| | | $ | | | | | | | | ||
| | | |
(dollars in thousands)
|
| |||
| | | | | $ | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | $ | | | |
| | | |
For the Year Ended
December 31, 2024 |
|
| Pro forma transaction accounting adjustments: | | | | |
| | | | | |
| | | | | |
| | | |
For the Year Ended
December 31, 2024 |
| |||
| Numerator | | | | | | | |
| | | | | $ | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | $ | | | |
| Denominator: | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Weighted average shares of common stock outstanding – basic | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Weighted average shares of common stock outstanding – diluted | | | | | | | |
| | | | | | | | |
| Pro forma net income per share of common stock outstanding – basic | | | | | | | |
| Pro forma net income per share of common stock outstanding – diluted | | | | | | | |
|
Name of beneficial owner
|
| |
Number of shares
beneficially owned |
| |
Percent of class
|
| ||||||
| >5% beneficial owners | | | | | | | | | | | | | |
|
Bares Capital Management, Inc.
|
| | | | 8,719,526(1) | | | | | | 6.81% | | |
|
BlackRock, Inc.
|
| | | | 9,720,089(2) | | | | | | 7.59% | | |
|
The Vanguard Group
|
| | | | 16,827,798(3) | | | | | | 13.14% | | |
| Management | | | | | | | | | | | | | |
|
Jason Aleem
|
| | | | 126,771(4) | | | | | | * | | |
|
Robert Bass
|
| | | | 108,401(5) | | | | | | * | | |
|
Julie Bornstein
|
| | | | 63,219(6) | | | | | | * | | |
|
Kerry D. Chandler
|
| | | | 33,976 | | | | | | * | | |
|
Bridget Frey
|
| | | | 659,042(7) | | | | | | * | | |
|
Anthony Kappus
|
| | | | 81,585(8) | | | | | | * | | |
|
Glenn Kelman
|
| | | | 2,261,272(9) | | | | | | 1.76% | | |
|
Austin Ligon
|
| | | | 693,002(10) | | | | | | * | | |
|
David Lissy
|
| | | | 69,835(11) | | | | | | * | | |
|
Chris Nielsen
|
| | | | 762,248(12) | | | | | | * | | |
|
Brad Singer
|
| | | | 66,155(13) | | | | | | * | | |
|
James Slavet
|
| | | | 267,364(14) | | | | | | * | | |
|
Anna Stevens
|
| | | | 64,158(15) | | | | | | * | | |
|
Christian Taubman
|
| | | | 98,519(16) | | | | | | * | | |
|
Selina Tobaccowala
|
| | | | 130,897 | | | | | | * | | |
|
All directors and executive officers as a group (14 individuals)
|
| | | | 5,486,444(17) | | | | | | 4.24% | | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Capital Stock | | | | | | | | | | |
| Classes of Stock | | |
•
Class A common stock
•
Class B common stock
•
Class C common stock
•
Class D common stock
•
Preferred Stock
|
| |
•
Class A common stock
•
Class L common stock
•
Preferred Stock
|
| |
•
Common stock
•
Preferred Stock
|
|
| Authorized Shares | | |
•
10,000,000,000 shares of Class A common stock
•
6,000,000,000 shares of Class B common stock
•
6,000,000,000 shares of Class C common stock
•
6,000,000,000 shares of Class D common stock
•
500,000,000 shares of Preferred Stock
|
| |
•
10,000,000,000 shares of Class A common stock
•
6,000,000,000 shares of Class L common stock, consisting of 3,000,000,000 shares of Series L-1 common stock and 3,000,000,000 shares of Series L-2 Class L common stock
•
500,000,000 shares of Preferred Stock
|
| |
•
500,000,000 shares of common stock
•
10,000,000 shares of Preferred Stock
|
|
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Par Value | | | $0.00001 per share | | |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| |
•
$0.001 per share
|
|
| Voting Rights for Common Stock | | |
•
Class A common stock: 1 vote per share
•
Class B common stock: 10 votes per share
•
Class C common stock: 1 vote per share
•
Class D common stock: 10 votes per share
|
| |
•
Class A common stock: 1 vote per share
•
Class L common stock: 1 vote per share
|
| |
•
Common stock: 1 vote per share
|
|
| | | | Rocket’s certificate of incorporation provides for a dual class common stock structure, which provides Mr. Gilbert with the ability to control the outcome of matters requiring stockholder approval, even if he beneficially owns significantly less than a majority of the shares of Rocket’s outstanding common stock, including the election of directors and significant corporate transactions, such as a merger or sale of substantially all of Rocket’s assets. | | |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| | ||
| | | | For more information on how the provisions of Rocket’s certificate of incorporation and bylaws can delay, defer or prevent a change of control, please read the section titled “Description of Our Capital Stock — Anti-Takeover Effects of Rocket’s Certificate of Incorporation and Bylaws” beginning on page [ ]. | | |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| | ||
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Dividend Rights | | | Holders of Rocket Class A common stock and Class B common stock are entitled to receive dividends when, as and if declared by Rocket’s Board out of legally available funds. Dividends may not be declared or paid in respect of Class B common stock unless they are declared or paid in the same amount and same type of cash or property (or combination thereof) in respect of Rocket Class A common stock, and vice versa. With respect to stock dividends, holders of Class B common stock must receive Class B common stock while holders of Rocket Class A common stock must receive Rocket Class A common stock. | | |
Holders of Rocket Class A common stock will have the same dividend rights as “Rocket Common Stock Prior to Up-C Collapse”.
Holders of Class L common stock are entitled to receive dividends when, as and if declared by Rocket’s Board out of legally available funds. Dividends may not be declared or paid in respect of Class L common stock unless they are declared or paid in the same amount and same type of cash or property (or combination thereof) in respect of Rocket Class A common stock, and vice versa. With respect to stock dividends, holders of Class L common stock must receive Class L common stock.
|
| | Holders of Redfin common stock are entitled to receive dividends out of funds legally available if the Redfin Board, in its discretion, determines to issue dividends and then only at the times and in the amounts that the Redfin Board may determine. | |
| | | |
Holders of Class C common stock and Class D common stock do not have any right to receive dividends other than dividends consisting of shares of Rocket (i) Class C common stock, paid proportionally with respect to each outstanding share of Rocket’s Class C common stock, and (ii) Class D common stock, paid proportionally with respect to each outstanding share of Rocket’s Class D common stock, in each case in connection with stock dividends.
|
| | | ||||
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Terms of Conversion | | |
Each share of Rocket’s Class B common stock is convertible at any time, at the option of the holder, into one share of Rocket Class A common stock, and each share of Rocket’s Class D common stock is convertible at any time, at the option of the holder, into one share of Class C common stock.
Each share of Rocket’s Class B common stock will automatically convert into one share of Rocket Class A common stock, and each share of Rocket’s Class D common stock will automatically convert into one share of Rocket’s Class C common stock, immediately prior to any transfer of such share except for certain transfers described in Rocket’s certificate of incorporation.
In addition, each share of Rocket’s Class B common stock will automatically convert into one share of Rocket Class A common stock, and each share of Rocket’s Class D common stock will automatically convert into one share of Rocket’s Class C common stock if RHI, the direct or indirect equityholders of RHI and their permitted transferees own less than 10% of the aggregate number of shares of Rocket’s issued and outstanding common stock.
|
| |
Each share of Class L common stock is convertible at any time, at the option of the holder, into one share of Rocket Class A common stock, provided that the applicable Lock-up Period for the Class L common stock has expired.
Each share of Class L common stock (a) may be converted at any time, at the option of the holder, into one share of Rocket Class A common stock and (b) will automatically convert into one share of Rocket Class A common stock, provided that the applicable Lock-up Period for the Class L common stock has expired, immediately prior to any transfer of such share except for certain permitted transfers described in Rocket’s certificate of incorporation.
In addition, each share of Rocket’s Class L common stock will automatically convert into one share of Rocket Class A common stock, on the first date on which the aggregate voting power of the Class L common stock is less than 79% of the total voting power of the outstanding shares of capital stock of Rocket.
Shares of Rocket Class A common stock are not subject to any conversion right.
|
| | Shares of Redfin common stock are not subject to any conversion right. | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| | | | Shares of Rocket Class A common stock and Class C common stock are not subject to any conversion right. | | | | | | | |
| Sinking Fund | | | None | | | None | | | None | |
| Redemption Rights | | | None | | | None | | | None | |
| Pre-emption Rights | | | None | | | None | | | None | |
| Liquidation Rights | | |
Upon Rocket’s liquidation or dissolution, the holders of Rocket Class A common stock and Class B common stock are entitled to share ratably in those of Rocket’s assets that are legally available for distribution to stockholders after payment of liabilities and subject to the prior rights of any holders of Preferred Stock then outstanding.
Other than their par value, the holders of Rocket’s Class C common stock and Class D common stock do not have any right to receive a distribution upon a liquidation or dissolution.
|
| | Upon Rocket’s liquidation or dissolution, the holders of Rocket Class A common stock and Class L common stock will be entitled to share ratably in those of Rocket’s assets that are legally available for distribution to stockholders after payment of liabilities and subject to the prior rights of any holders of Preferred Stock then outstanding. | | | Upon Redfin’s liquidation, dissolution or winding-up, the assets legally available for distribution to Redfin stockholders would be distributable ratably among the holders of Redfin common stock and any participating Preferred Stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of Preferred Stock. | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Restrictions on Alienability | | | None | | |
Mr. Gilbert and the other Rock Equityholders will be prohibited from transferring or otherwise disposing of (a) any shares of Class L common stock prior to the first anniversary of the Up-C Closing Date and (b) 50% of the shares of Class L common stock prior to the second anniversary of the Up-C Closing Date. Following the second anniversary of the Up-C Closing Date, no shares of Class L common stock will be subject to a Lock-Up Period.
The restrictions described in the above paragraph do not apply, subject in certain cases to various conditions (including the transfer of lock-up restrictions), to any Permitted Transfers.
|
| | None | |
| Provisions Discriminating Against Majority Shareholder | | | Rocket’s certificate of incorporation provides that, at any time when the aggregate voting power of the outstanding RHI Securities would be equal to or greater than 79% of the total voting power of Rocket’s outstanding stock, the number of votes per share of each RHI Security will be reduced such that the aggregate voting power of all of the RHI Securities is equal to 79%. | | | Rocket’s certificate of incorporation following the Up-C Collapse will provide that, at any time when the aggregate voting power of the outstanding Class L common stock would be equal to or greater than 79% of the total voting power of Rocket’s outstanding stock, the number of votes per share of each share of Class L common stock will be reduced such that the aggregate voting power of all such Class L common stock is equal to 79%. | | | None | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Board of Directors | | | | | | | | | | |
| Number of Directors | | | The number of directors is fixed from time to time by Rocket’s Board. | | |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| | The number of directors is fixed from time to time by Redfin’s Board. | |
| Removal of Directors | | | Until the RHI Parties beneficially own less than a majority of the combined voting power of Rocket’s common stock, any director may be removed with or without cause by the affirmative vote of a majority of Rocket’s outstanding shares of common stock. After the RHI Parties cease to beneficially own a majority of the combined voting power of the common stock, Rocket’s certificate of incorporation provides that any director may only be removed with cause by the affirmative vote of holders of 75% of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class. | | | Until the Gilberts beneficially own less than a majority of the combined voting power of Rocket’s common stock, any director may be removed with or without cause by the affirmative vote of a majority of Rocket’s outstanding shares of common stock. After the Gilberts cease to beneficially own a majority of the combined voting power of the common stock, Rocket’s certificate of incorporation provides that any director may only be removed with cause by the affirmative vote of holders of 75% of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class. | | | Until the 2025 annual meeting of stockholders (the “2025 Annual Meeting”) (when the Redfin Board shall cease to be classified) and subject to the rights of the holders of any series of Preferred Stock, no director may be removed except for cause and only by the affirmative vote of the holders of at least two-thirds of the voting power of the then-outstanding shares of capital stock of Redfin then entitled to vote at an election of directors voting together as a single class. From and after the election of directors at the 2025 Annual Meeting and subject to the rights of the holders of any series of Preferred Stock, any director may be removed with or without cause by the affirmative vote of the holders of at least a majority of the voting power of the then-outstanding shares of capital stock of Redfin then entitled to vote at an election of directors voting together as a single class. | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Filling Board Vacancies | | | Vacancies and newly created directorships on the Rocket Board may be filled at any time by the remaining directors or Rocket’s stockholders, provided that, after the RHI Parties cease to beneficially own a majority of the combined voting power of Rocket’s common stock, vacancies on Rocket’s Board, whether resulting from an increase in the number of directors or the death, removal or resignation of a director, will be filled only by Rocket’s Board and not by stockholders. | | | Vacancies and newly created directorships on the Rocket Board may be filled at any time by the remaining directors or Rocket’s stockholders, provided that, after the Gilberts cease to beneficially own a majority of the combined voting power of Rocket’s common stock, vacancies on Rocket’s Board, whether resulting from an increase in the number of directors or the death, removal or resignation of a director, will be filled only by Rocket’s Board and not by stockholders. | | | Any vacancy occurring in the Redfin Board for any cause, and any newly created directorship resulting from any increase in the authorized number of directors, shall, unless (a) the Redfin Board determines by resolution that any such vacancies or newly created directorships shall be filled by the stockholders or (b) as otherwise provided by law, be filled only by the affirmative vote of a majority of the directors then in office, although less than a quorum, or by a sole remaining director, and not by the stockholders. | |
| Indemnification | | | Rocket’s certificate of incorporation and bylaws limit the liability of directors and officers to the fullest extent permitted by the DGCL. Rocket is generally obligated to provide customary indemnification and advancement rights to directors and officers. | | |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| | Redfin’s certificate of incorporation and bylaws limit the liability of directors and officers to the fullest extent permitted by the DGCL. Redfin is generally obligated to provide customary indemnification and advancement rights to directors and officers. | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Classified Board | | |
Rocket’s certificate of incorporation provides that Rocket’s Board is divided into three classes of directors, with the classes as nearly equal in number as possible. As a result, approximately one-third of Rocket’s Board is elected each year. The classification of directors has the effect of making it more difficult for stockholders to change the composition of Rocket’s Board.
Rocket’s certificate of incorporation also provides that, subject to any rights of holders of Preferred Stock to elect additional directors under specified circumstances, the number of directors is fixed exclusively pursuant to a resolution adopted by Rocket’s Board.
|
| |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| | Redfin’s certificate of incorporation provides that, until the 2023 annual meeting of stockholders, the directors shall be divided, with respect to the time for which they severally hold office, into three classes of directors, designated as Class I, Class II and Class III, respectively (each class as nearly equal in number as reasonably possible). Commencing with the 2023 annual meeting, under the terms of Redfin’s certificate of incorporation, successive groups of certain directors began serving in classes with a term of one year such that, from and after the election of directors at the 2025 Annual Meeting, the Redfin Board shall cease to be classified and the directors elected at the 2025 Annual Meeting (and each annual meeting of the stockholders thereafter) shall be elected for a term expiring at the next annual meeting of the stockholders. | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Stockholder Rights | | | | | | | | | | |
|
Calling Special Meetings
|
| | Subject to any special rights of the holders of any series of Preferred Stock, special meetings of the stockholders can only be called by the chairman of Rocket’s Board or the chief executive officer, or by Rocket’s Board. Stockholders are not permitted to call a special meeting or to require Rocket’s Board to call a special meeting. | | |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| | Special meetings of the stockholders of Redfin may be called only by the chairperson of the Redfin Board, the chief executive officer, the president, or the Redfin Board. | |
| Ability to Act by Written Consent | | | Stockholder action can be taken by written consent in lieu of a meeting; provided that after the RHI Parties cease to beneficially own a majority of the combined voting power of Rocket’s common stock, stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting. | | | Stockholder action can be taken by written consent in lieu of a meeting; provided that after the Gilberts cease to beneficially own a majority of the combined voting power of Rocket’s common stock, stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting. | | | Subject to the rights of any series of Preferred Stock, no action shall be taken by the stockholders of Redfin except at a duly called annual or special meeting of stockholders and no action shall be taken by the stockholders by written consent. | |
| Advance Notice for Proposing Business and Nominations | | | Advance written notice must be given prior to a meeting of Rocket’s stockholders of a proposal or director nomination which a stockholder desires to present at such a meeting. | | |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| | Advance written notice must be given prior to a meeting of Redfin’s stockholders of a proposal or director nomination which a stockholder desires to present at such a meeting. | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Bylaw Amendments | | |
As long as the RHI Parties own a majority of the combined voting power of Rocket’s common stock, the affirmative vote of holders of a majority of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal Rocket’s bylaws.
After the RHI Parties cease to beneficially own a majority of the combined voting power of Rocket’s common stock, the affirmative vote of holders of 75% of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal Rocket’s bylaws.
|
| |
As long as the Gilberts own a majority of the combined voting power of Rocket’s common stock, the affirmative vote of holders of a majority of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal Rocket’s bylaws.
After the Gilberts cease to beneficially own a majority of the combined voting power of Rocket’s common stock, the affirmative vote of holders of 75% of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal Rocket’s bylaws.
|
| | Any alteration, amendment or repeal of Redfin’s bylaws, and any adoption of new bylaws, shall require the approval of the Redfin Board or the stockholders of the Redfin as expressly provided in Redfin’s certificate of incorporation. | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
| Certificate of Incorporation Amendments | | |
As long as the RHI Parties own a majority of the combined voting power of Rocket’s common stock, the affirmative vote of holders of a majority of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal specified provisions of Rocket’s certificate of incorporation.
After the RHI Parties cease to beneficially own a majority of the combined voting power of Rocket’s common stock, the affirmative vote of holders of 75% of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal specified provisions of Rocket’s certificate of incorporation.
|
| |
As long as the Gilberts own a majority of the combined voting power of Rocket’s common stock, the affirmative vote of holders of a majority of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal specified provisions of Rocket’s certificate of incorporation.
After the Gilberts cease to beneficially own a majority of the combined voting power of Rocket’s common stock, the affirmative vote of holders of 75% of the combined voting power of Rocket’s outstanding common stock eligible to vote in the election of directors, voting together as a single class, will be required to amend, alter, change or repeal specified provisions of Rocket’s certificate of incorporation.
|
| | Notwithstanding any other provision of Redfin’s certificate of incorporation or any provision of law that might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock Redfin required by law or by Redfin’s restated certificate of incorporation, the affirmative vote of the holders of at least a majority of the voting power of all of the then-outstanding shares of capital stock of Redfin entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend or repeal any provision of Redfin’s restated certificate of incorporation. | |
|
Topic
|
| |
Rights of Holders of
Rocket Common Stock Prior to Up-C Collapse |
| |
Rights of Holders of
Rocket Common Stock After the Up-C Collapse |
| |
Rights of Holders of
Redfin Common Stock |
|
|
Exclusive Forum
|
| |
Rocket’s certificate of incorporation requires, to the fullest extent permitted by law, that (i) any derivative action or proceeding brought on Rocket’s behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of Rocket’s directors, officers or stockholders to Rocket or Rocket’s stockholders, (iii) any action asserting a claim against Rocket arising pursuant to any provision of the DGCL or Rocket’s certificate of incorporation or Rocket’s bylaws or (iv) any action asserting a claim against Rocket governed by the internal affairs doctrine will have to be brought only in the Third Judicial Circuit, Wayne County, Michigan (or, if the Third Judicial Circuit, Wayne County, Michigan lacks jurisdiction over such action or proceeding, then another state court of the State of Michigan or, if no state court of the State of Michigan has jurisdiction, then the United States District Court for the Eastern District of Michigan) or the Court of Chancery of the State of Delaware (or if the Court of Chancery of the State of Delaware lacks jurisdiction, any other state court of the State of Delaware, or if no state of the State of Delaware has jurisdiction, the federal district court for the District of Delaware), unless Rocket consents in writing to the selection of an alternative forum.
|
| |
Same as “Rocket Common Stock Prior to Up-C Collapse”
|
| |
Redfin’s certificate of incorporation provides that unless Redfin consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf of Redfin; (b) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of Redfin to Redfin or Redfin’s stockholders; (c) any action asserting a claim against Redfin arising pursuant to any provision of the Delaware General Corporation Law, Redfin’s certificate of incorporation or bylaws; (d) any action to interpret, apply, enforce or determine the validity of Redfin’s certificate of incorporation or bylaws or (e) any action asserting a claim against Redfin governed by the internal affairs doctrine.
|
|
| | | | | | A-1 | | | |
| | | | | | A-1 | | | |
| | | | | | A-2 | | | |
| | | | | | A-2 | | | |
| | | | | | A-2 | | | |
| | | | | | A-2 | | | |
| | | | | | A-4 | | | |
| | | | | | A-5 | | | |
| | | | | | A-5 | | | |
| | | | | | A-6 | | | |
| | | | | | A-6 | | | |
| | | | | | A-6 | | | |
| | | | | | A-7 | | | |
| | | | | | A-7 | | | |
| | | | | | A-9 | | | |
| | | | | | A-10 | | | |
| | | | | | A-10 | | | |
| | | | | | A-10 | | | |
| | | | | | A-12 | | | |
| | | | | | A-12 | | | |
| | | | | | A-13 | | | |
| | | | | | A-14 | | | |
| | | | | | A-16 | | | |
| | | | | | A-17 | | | |
| | | | | | A-18 | | | |
| | | | | | A-19 | | | |
| | | | | | A-20 | | | |
| | | | | | A-21 | | | |
| | | | | | A-21 | | | |
| | | | | | A-21 | | | |
| | | | | | A-22 | | | |
| | | | | | A-22 | | | |
| | | | | | A-22 | | | |
| | | | | | A-22 | | | |
| | | | | | A-22 | | | |
| | | | | | A-22 | | | |
| | | | | | A-25 | | | |
| | | | | | A-25 | | | |
| | | | | | A-26 | | | |
| | | | | | A-26 | | | |
| | | | | | A-26 | | |
| | | | | | A-27 | | | |
| | | | | | A-27 | | | |
| | | | | | A-28 | | | |
| | | | | | A-29 | | | |
| | | | | | A-30 | | | |
| | | | | | A-30 | | | |
| | | | | | A-30 | | | |
| | | | | | A-30 | | | |
| | | | | | A-30 | | | |
| | | | | | A-31 | | | |
| | | | | | A-31 | | | |
| | | | | | A-31 | | | |
| | | | | | A-31 | | | |
| | | | | | A-31 | | | |
| | | | | | A-31 | | | |
| | | | | | A-32 | | | |
| | | | | | A-32 | | | |
| | | | | | A-35 | | | |
| | | | | | A-35 | | | |
| | | | | | A-35 | | | |
| | | | | | A-37 | | | |
| | | | | | A-37 | | | |
| | | | | | A-41 | | | |
| | | | | | A-43 | | | |
| | | | | | A-43 | | | |
| | | | | | A-45 | | | |
| | | | | | A-46 | | | |
| | | | | | A-46 | | | |
| | | | | | A-46 | | | |
| | | | | | A-47 | | | |
| | | | | | A-47 | | | |
| | | | | | A-48 | | | |
| | | | | | A-48 | | | |
| | | | | | A-48 | | | |
| | | | | | A-49 | | | |
| | | | | | A-49 | | | |
| | | | | | A-49 | | | |
| | | | | | A-50 | | | |
| | | | | | A-50 | | | |
| | | | | | A-50 | | | |
| | | | | | A-51 | | |
| | | | | | A-52 | | | |
| | | | | | A-52 | | | |
| | | | | | A-53 | | | |
| | | | | | A-53 | | | |
| | | | | | A-54 | | | |
| | | | | | A-54 | | | |
| | | | | | A-54 | | | |
| | | | | | A-54 | | | |
| | | | | | A-55 | | | |
| | | | | | A-55 | | | |
| | | | | | A-55 | | | |
| | | | | | A-55 | | | |
| | | | | | A-56 | | | |
| | | | | | A-56 | | | |
| | | | | | A-56 | | | |
| | | | | | A-57 | | | |
| | | | | | A-57 | | | |
| | | | | | A-57 | | | |
| | | | | | A-57 | | | |
| | | | | | A-57 | | |
| | Exhibit A | | | — | | | Certain Definitions and Index of Defined Terms | |
| | Exhibit B | | | — | | | Form of Certificate of Merger | |
| | Exhibit C-1 | | | — | | | Parent Tax Certificate | |
| | Exhibit C-2 | | | — | | | Company Tax Certificate | |
| | ROCKET COMPANIES, INC. | | | |||||
| | By: | | |
/s/ Varun Krishna
|
| | | |
| | Name: | | | Varun Krishna | | | | |
| | Title: | | | Chief Executive Officer | | | | |
| | NEPTUNE MERGER SUB, INC. | | | |||||
| | By: | | |
/s/ Chris Howard
|
| | ||
| | Name: | | | Chris Howard | | | | |
| | Title: | | | President | | | | |
| | REDFIN CORPORATION | | | |||||
| | By: | | |
/s/ Glenn Kelman
|
| | ||
| | Name: | | | Glenn Kelman | | | | |
| | Title: | | | Chief Executive Officer | | | | |
| |
401(k) Plan
|
| |
Section 4.9(e)
|
|
| |
Achieved Company PSUs
|
| |
Section 1.5(a)(vi)
|
|
| |
Agencies
|
| |
Section 2.24(a)
|
|
| |
Agreement
|
| |
Preamble
|
|
| |
Agreement Date
|
| |
Preamble
|
|
| |
AI Technology
|
| |
Section 2.13(i)
|
|
| |
Alternative Acquisition Agreement
|
| |
Section 4.6(b)(iii)
|
|
| |
Antitrust Order
|
| |
Section 4.7(c)
|
|
| |
Assumed Option
|
| |
Section 1.5(a)(iv)
|
|
| |
Assumed Unit
|
| |
Section 1.5(a)(v)
|
|
| |
Audit Committee
|
| |
Section 2.8(c)
|
|
| |
Book-Entry Share
|
| |
Section 1.8(c)
|
|
| |
Cancelled Shares
|
| |
Section 1.5(a)(iii)
|
|
| |
Capitalization Date
|
| |
Section 2.2(a)
|
|
| |
Certificate of Merger
|
| |
Section 1.3
|
|
| |
Change of Board Recommendation
|
| |
Section 4.6(e)
|
|
| |
Class A Common Stock
|
| |
Section 3.2(a)
|
|
| |
Class B Common Stock
|
| |
Section 3.2(a)
|
|
| |
Class C Common Stock
|
| |
Section 3.2(a)
|
|
| |
Class D Common Stock
|
| |
Section 3.2(a)
|
|
| |
Closing
|
| |
Section 1.3
|
|
| |
Closing Date
|
| |
Section 1.3
|
|
| |
Common Shares Trust
|
| |
Section 1.6(b)
|
|
| |
Company
|
| |
Preamble
|
|
| |
Company Balance Sheet
|
| |
Section 2.8(a)
|
|
| |
Company Board
|
| |
Recitals
|
|
| |
Company Board Recommendation
|
| |
Recitals
|
|
| |
Company Bylaws
|
| |
Section 2.1(b)
|
|
| |
Company Certificate
|
| |
Section 2.1(b)
|
|
| |
Company Common Stock
|
| |
Section 2.2(a)
|
|
| |
Company Counsel
|
| |
Section 5.3(e)
|
|
| |
Company Disclosure Letter
|
| |
Article II
|
|
| |
Company Employees
|
| |
Section 4.9(a)
|
|
| |
Company Equity Interests
|
| |
Section 2.2(d)
|
|
| |
Company ESPP
|
| |
Section 1.5(a)(vii)
|
|
| |
Company Financial Statements
|
| |
Section 2.8(a)
|
|
| |
Company Material Contract
|
| |
Section 2.11(a)
|
|
| |
Company Preferred Stock
|
| |
Section 2.2(a)
|
|
| |
Company SEC Documents
|
| |
Section 2.7(a)
|
|
| |
Company Stockholder Approval
|
| |
Section 2.3(c)
|
|
| |
Company Stockholder Meeting
|
| |
Section 4.5
|
|
| |
Company Tax Certificate
|
| |
Section 4.13(b)
|
|
| |
Company Termination Fee
|
| |
Section 6.3(a)
|
|
| |
Continuing Employee
|
| |
Section 4.9(b)
|
|
| |
Converted RSUs
|
| |
Section 1.5(a)(vi)
|
|
| |
Current Purchase Period
|
| |
Section 1.5(a)(vii)
|
|
| |
D&O Indemnification Agreements
|
| |
Section 4.10(a)
|
|
| |
D&O Runoff Insurance
|
| |
Section 4.10(d)
|
|
| |
Data Tape
|
| |
Section 2.24(k)
|
|
| |
Detriment
|
| |
Section 4.7(e)
|
|
| |
Effective Time
|
| |
Section 1.3
|
|
| |
Electronic Delivery
|
| |
Section 7.12
|
|
| |
Enforceability Exceptions
|
| |
Section 2.3(a)
|
|
| |
Equity Awards Table
|
| |
Section 2.2(c)
|
|
| |
Excess Shares
|
| |
Section 1.6(a)
|
|
| |
Exchange Agent
|
| |
Section 1.8(a)
|
|
| |
Exchange Fund
|
| |
Section 1.8(b)
|
|
| |
Exchange Ratio
|
| |
Section 1.5(a)(iii)
|
|
| |
Equity Awards Table
|
| |
Section 2.2(c)
|
|
| |
Fannie Mae
|
| |
Section 2.24(a)
|
|
| |
Financial Advisor
|
| |
Section 2.19
|
|
| |
Freddie Mac
|
| |
Section 2.24(a)
|
|
| |
Ginnie Mae
|
| |
Section 2.24(a)
|
|
| |
Hedge Counterparty
|
| |
Section 4.18(c)
|
|
| |
Indemnified Person
|
| |
Section 4.10(a)
|
|
| |
Indemnified Persons
|
| |
Section 4.10(a)
|
|
| |
Insurance Policies
|
| |
Section 2.22
|
|
| |
Intervening Event Notice Period
|
| |
Section 4.6(g)(i)
|
|
| |
Leased Real Property
|
| |
Section 2.17(b)
|
|
| |
Maximum Amount
|
| |
Section 4.10(d)
|
|
| |
Merger
|
| |
Recitals
|
|
| |
Merger Consideration
|
| |
Section 1.5(a)(iii)
|
|
| |
Merger Sub
|
| |
Preamble
|
|
| |
New Plans
|
| |
Section 4.9(a)
|
|
| |
Notification and Report Form
|
| |
Section 4.7(c)
|
|
| |
OFAC
|
| |
Section 2.6(d)
|
|
| |
Open Source Technology
|
| |
Section 2.13(g)
|
|
| |
Other Required Filings
|
| |
Section 2.18
|
|
| |
Outside Date
|
| |
Section 6.1(b)(i)
|
|
| |
Parent
|
| |
Preamble
|
|
| |
Parent Balance Sheet
|
| |
Section 3.6(a)
|
|
| |
Parent Common Stock
|
| |
Section 3.2(a)
|
|
| |
Parent Disclosure Letter
|
| |
Article III
|
|
| |
Parent Equity Interests
|
| |
Section 3.2(d)
|
|
| |
Parent Financial Statements
|
| |
Section 3.6(a)
|
|
| |
Parent Preferred Stock
|
| |
Section 3.2(a)
|
|
| |
Parent Reorganization Stockholder Approval
|
| |
Section 3.16(b)
|
|
| |
Parent Reorganization Written Consent
|
| |
Section 3.16(b)
|
|
| |
Parent Representatives
|
| |
Section 4.3(a)
|
|
| |
Parent SEC Documents
|
| |
Section 3.5(a)
|
|
| |
Parent Tax Certificate
|
| |
Section 4.13(b)
|
|
| |
Parent Welfare Plan
|
| |
Section 4.9(a)
|
|
| |
Parties
|
| |
Preamble
|
|
| |
Party
|
| |
Preamble
|
|
| |
Payoff Letter
|
| |
Section 4.19
|
|
| |
Pre-Closing Period
|
| |
Section 4.1
|
|
| |
Proxy Statement
|
| |
Section 4.4(a)
|
|
| |
Proxy Statement/Prospectus
|
| |
Section 4.4(a)
|
|
| |
Qualifying Acquisition Proposal
|
| |
Section 4.6(c)
|
|
| |
Registration Statement
|
| |
Section 4.4(a)
|
|
| |
Remedies
|
| |
Section 4.7(e)
|
|
| |
Reorganization Transactions
|
| |
Recitals
|
|
| |
Repurchase Obligations
|
| |
Section 2.24(l)
|
|
| |
Sarbanes-Oxley Act
|
| |
Section 2.7(a)
|
|
| |
Security Incidents
|
| |
Section 2.14(a)
|
|
| |
Share
|
| |
Recitals
|
|
| |
Shares
|
| |
Recitals
|
|
| |
State Department
|
| |
Section 2.6(d)
|
|
| |
Stockholder Litigation
|
| |
Section 4.15
|
|
| |
Superior Proposal Notice Period
|
| |
Section 4.6(f)(i)
|
|
| |
Surviving Corporation
|
| |
Section 1.1
|
|
| |
Takeover Law
|
| |
Section 2.3(b)
|
|
| |
Tax Opinion
|
| |
Section 4.13(b)
|
|
| |
Transaction Agreement
|
| |
Recitals
|
|
| |
Transactions
|
| |
Recitals
|
|
|
Name
|
| |
State of Incorporation
|
|
| Redfin Corporation | | | Delaware | |
| Neptune Merger Sub, Inc. | | | Delaware | |
| |
Signature
|
| |
Title
|
|
| |
/s/ Varun Krishna
Varun Krishna
|
| |
Chief Executive Officer and Director
(Principal Executive Officer) |
|
| |
/s/ Brian Brown
Brian Brown
|
| |
Chief Financial Officer and Treasurer
(Principal Financial Officer) |
|
| |
/s/ Noah Edwards
Noah Edwards
|
| |
Chief Accounting Officer
(Principal Accounting Officer) |
|
| |
/s/ Daniel Gilbert
Daniel Gilbert
|
| |
Chairman of the Board of Directors
|
|
| |
/s/ William Emerson
William Emerson
|
| |
Director
|
|
| |
/s/ Jennifer Gilbert
Jennifer Gilbert
|
| |
Director
|
|
| |
Signature
|
| |
Title
|
|
| |
/s/ Jonathan Mariner
Jonathan Mariner
|
| |
Director
|
|
| |
/s/ Alastair Rampell
Alastair Rampell
|
| |
Director
|
|
| |
/s/ Matthew Rizik
Matthew Rizik
|
| |
Director
|
|
| |
/s/ Suzanne Shank
Suzanne Shank
|
| |
Director
|
|
| |
/s/ Nancy Tellem
Nancy Tellem
|
| |
Director
|
|
Exhibit 5.1
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | ||
| 212-373-3000 | 1285 Avenue of the Americas | |
| 212-757-3990 | New York, New York 10019-6064 |
April 7, 2025
Rocket Companies, Inc.
1050 Woodward Avenue
Detroit, MI 48226
Registration Statement on Form S-4
Ladies and Gentlemen:
We have acted as special counsel to Rocket Companies, Inc., a Delaware corporation (the “Company”), in connection with the Registration Statement on Form S-4 (the “Registration Statement”) of the Company, filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the “Act”), and the rules and regulations thereunder (the “Rules”). You have asked us to furnish our opinion as to the legality of the securities being registered under the Registration Statement. The Registration Statement relates to the registration under the Act of up to 120,041,104 shares of the Company’s Class A common stock, par value $0.00001 per share (“Rocket Class A Common Stock”), that are being issued or are issuable pursuant to the Agreement and Plan of Merger, dated as of March 9, 2025 (the “Merger Agreement”), by and among the Company, Neptune Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”) and Redfin Corporation, a Delaware corporation (“Redfin”), providing for the merger of (i) Merger Sub with and into Redfin (the “Merger”), with Redfin surviving the Merger and continuing as a wholly owned subsidiary of the Company.
In connection with the furnishing of this opinion, we have examined originals, or copies certified or otherwise identified to our satisfaction, of the following documents (collectively, the “Documents”):
1. the Registration Statement;
2. the Merger Agreement;
3. the form of Restated Certificate of Incorporation of the Company included as Exhibit 3.2 to the Registration Statement; and
4. the form of Second Amended and Restated Certificate of Incorporation of the Company included as Exhibit 3.3 to the Registration Statement.
In addition, we have examined (i) such corporate records of the Company that we have considered appropriate, including the Amended and Restated Certificate of Incorporation of Rocket Companies, Inc. dated August 5, 2020, as amended by the Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Rocket Companies, Inc., dated June 18, 2024 and the Amended and Restated Bylaws of Rocket Companies, Inc., certified by the Company as in effect on the date of this letter, and copies of resolutions of the board of directors of the Company relating to the issuance of the Shares, certified by the Company and (ii) such other certificates, agreements and documents that we deemed relevant and necessary as a basis for the opinions expressed below. We have also relied upon the factual matters contained in the representations and warranties of the Company made in the Documents and upon certificates of public officials and the officers of the Company.
In our examination of the documents referred to above, we have assumed, without independent investigation, the genuineness of all signatures, the legal capacity of all individuals who have executed any of the documents reviewed by us, the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted to us as certified, photostatic, reproduced or conformed copies of valid existing agreements or other documents, the authenticity of all the latter documents and that the statements regarding matters of fact in the certificates, records, agreements, instruments and documents that we have examined are accurate and complete. We have also assumed that the Merger Agreement is a legal, valid and binding obligation of each party to it other than the Company, enforceable against each such party in accordance with its terms.
| Apollo Global Management, Inc. | 2 |
In furnishing this opinion, we have further assumed that, before the issuance of the Shares, the conditions to consummating the transactions contemplated by the Merger Agreement will have been satisfied or duly waived.
Based upon the above, and subject to the stated assumptions, exceptions and qualifications, we are of the opinion that the Shares have been duly authorized by all necessary corporate action on the part of the Company and, when issued, delivered and paid for as contemplated in the Registration Statement and in accordance with the terms of the Merger Agreement, the Shares will be validly issued, fully paid and non-assessable.
The opinion expressed above is limited to the General Corporation Law of the State of Delaware. Our opinion is rendered only with respect to the laws, and the rules, regulations and orders under those laws, that are currently in effect.
We hereby consent to use of this opinion as an exhibit to the Registration Statement and to the use of our name under the heading “Validity of Common Stock” contained in the prospectus included in the Registration Statement. In giving this consent, we do not thereby admit that we come within the category of persons whose consent is required by the Act or the Rules.
| Very truly yours, | |
| /s/ Paul, Weiss, Rifkind, Wharton & Garrison LLP | |
| PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP |
Exhibit 8.1

April 7, 2025
Redfin Corporation
1099 Stewart Street, Suite 600
Seattle, WA 98101
Ladies and Gentlemen,
We have acted as counsel to Redfin Corporation, a Delaware corporation (“Company”), in connection with that certain Agreement and Plan of Merger, dated as of March 9, 2025 (the “Agreement”) by and among Rocket Companies, Inc., a Delaware corporation (“Parent”); Neptune Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”); and the Company. Pursuant to the Agreement, Merger Sub will be merged with and into Company, with Company surviving the Merger as a wholly owned subsidiary of Parent (the “Merger”) according to the terms and conditions set forth in the Agreement. The time at which the Merger becomes effective is hereafter referred to as the “Effective Time.”
This opinion is being delivered in connection with the Registration Statement (File No. []) of Parent on Form S-4, filed on April 7, 2025 with the Securities and Exchange Commission (the “Registration Statement”). All section references, unless otherwise indicated, are to the United States Internal Revenue Code of 1986, as amended (the “Code”). Capitalized terms not defined herein have the meanings specified in the Agreement unless otherwise indicated.
In rendering our opinion, we have examined and, with your consent, are expressly relying upon (without any independent investigation thereof) the truth and accuracy of the statements, covenants, representations and warranties contained in the following documents (including all schedules and exhibits thereto):
| (a) | The Agreement (including any amendments, exhibits, and schedules thereto); |
| (b) | A tax representation letter of Parent and Merger Sub, signed by an authorized officer of each of Parent and Merger Sub, delivered to us by Parent and Merger Sub for purposes of this opinion and incorporated herein by reference; and |
| (c) | A tax representation letter of the Company, signed by an authorized officer of Company, delivered to us by Company for purposes of this opinion and incorporated herein by reference. |
| (d) | Such other documents and corporate records as we have deemed necessary or appropriate for purposes of our opinion. |
In rendering our opinion, we have assumed, without any independent investigation or verification, that all of the information as to factual matters contained in the documents referred to herein is true, correct, and complete and no actions have been taken or will be taken which are inconsistent with such statements, descriptions or representations or which make any such statements, descriptions or representations untrue, incorrect or incomplete. Any inaccuracy with respect to factual matters contained in the documents or incompleteness in our understanding of the facts could alter the conclusion reached herein.
In addition, for purposes of rendering our opinion, we have assumed with your permission, that:
| (i) | All signatures on all documents reviewed by us are genuine, all documents submitted to us as originals are authentic, true and correct, all documents submitted to us as copies are true and correct copies of the originals thereof, there has been (or will be by the Effective Time) execution and delivery of all documents where execution and delivery are prerequisites to the effectiveness thereof, and each natural person signing any document reviewed by us had the legal capacity to do so; |
| (ii) | Any representation or statement referred to above made “to the knowledge” or otherwise similarly qualified is correct without such qualification, and all statements and representations, whether or not qualified, are true and will remain true through the Effective Time of the Merger and thereafter where relevant; |
| (iii) | The parties have complied with and, if applicable, will continue to comply with, the covenants contained in the Agreement, the Registration Statement, and the Proxy Statement/Prospectus (and no covenants or conditions described therein and affecting this opinion (including, for clarity, the condition specified in Section 5.3(f) of the Agreement) will be waived or modified); and |
| (iv) | The Merger and the transactions contemplated in the Agreement will be effected in accordance with the terms thereof. |
Based on the foregoing documents, materials, and assumptions and information, and subject to the qualifications and assumptions set forth herein, it is our opinion that the Merger will constitute a “reorganization” within the meaning of Section 368(a) of the Code. Additionally, we confirm that the statements set forth in the Registration Statement under the heading “Material U.S. Federal Income Tax Consequences,” subject to the assumptions, exceptions, limitations and qualifications set forth herein and described in the Registration Statement, constitute our opinion as to the material U.S. federal income tax consequences of the Merger to U.S. holders (as defined in the Registration Statement) of Company Common Stock as of the effective date of the Registration Statement.
This opinion is rendered only as of the date hereof, and we undertake no obligation to supplement, update or revise this opinion after the date hereof to reflect any changes (including changes that have retroactive effect) in applicable law or factual matters arising subsequent to the date hereof or the impact of any information, document, certificate, record, statement, representation, covenant, agreement or assumption relied upon herein that becomes untrue, incorrect, or incomplete.
Our opinion set forth above is based upon the existing provisions of the Code, applicable U.S. Treasury Regulations promulgated or proposed under the Code, published administrative rulings and procedures, judicial decisions and other applicable authorities, all as in effect on the date hereof, which are subject to change (possibly with retroactive effect) so as to affect the conclusions stated herein.
2
Our opinion is limited to the specific U.S. federal tax consequences of the Merger presented above. No opinion is expressed as to any transaction other than the Merger as described in the Agreement, including (i) any transaction undertaken in connection with the Merger and (ii) the Merger, if, to the extent relevant to our opinion, either all the transactions described in the Agreement are not consummated in accordance with the terms of the Agreement and without waiver or breach of any provisions thereof or all the factual statements, representations, warranties, and assumptions upon which we have relied are not true and accurate at all times. In addition, this opinion does not address any estate, gift, state, local or foreign tax consequences that may result from the Merger.
No ruling has been or will be requested from the Internal Revenue Service (the “Service”) concerning the U.S. federal income tax consequences of the Merger. In reviewing this opinion, you should be aware that the opinion set forth above represents our conclusions regarding the application of existing U.S. federal income tax law to the Merger. Further, if the facts vary from those relied upon (including if any representation, covenant, warranty or assumption upon which we have relied is inaccurate, incomplete, breached or ineffective), our opinion contained herein could be inapplicable. You should be aware that an opinion of counsel represents only counsel’s best legal judgment, and has no binding effect or official status of any kind, and that no assurance can be given that contrary positions may not be taken by the Service or that a court considering the issues would not hold otherwise.
This opinion is being delivered solely in connection with the Registration Statement. This opinion may not otherwise be relied upon or utilized for any other purpose or by any other person or entity without our prior written consent. However, we hereby consent to the filing of this opinion with the Securities and Exchange Commission as an exhibit to the Registration Statement, and to the references therein to us. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended.
| Very truly yours, | |
| /S/ Fenwick & West LLP | |
| Fenwick & West LLP | |
| a limited liability partnership including | |
| professional corporations |
3
Exhibit 23.3
Consent of Independent Registered Public Accounting Firm
We consent to the reference to our firm under the caption "Experts" in the Registration Statement and related Preliminary Prospectus of Rocket Companies, Inc. for the registration of shares of its common stock and to the incorporation by reference therein of our reports dated March 3, 2025, with respect to the consolidated financial statements of Rocket Companies, Inc, and the effectiveness of internal control over financial reporting of Rocket Companies, Inc., included in its Annual Report (Form 10-K) for the year ended December 31, 2024, filed with the Securities and Exchange Commission.
/s/ Ernst & Young LLP
Detroit, Michigan
April 7, 2025
Exhibit 23.4
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in this Registration Statement on Form S-4 of Rocket Companies, Inc. of our reports dated February 27, 2025, relating to the financial statements of Redfin Corporation and the effectiveness of Redfin Corporation’s internal control over financial reporting appearing in the Annual Report on Form 10-K of Redfin Corporation for the year ended December 31, 2024. We also consent to the reference to us under the heading "Experts" in such Registration Statement.
/s/ Deloitte & Touche LLP
Seattle, Washington
April 7, 2025
Exhibit 23.5
Consent of Independent Registered Public Accounting Firm
We consent to the reference to our firm under the caption "Experts" and to the use of our reports dated February 20, 2025 with respects to the consolidated financial statements of Mr. Cooper Group Inc. included in the Registration Statement and related Preliminary Prospectus of Rocket Companies, Inc. for the registration of shares of its common stock and to the incorporation by reference therein of our reports dated February 20, 2025, with respect to the consolidated financial statements of Mr. Cooper Group, Inc., and the effectiveness of internal control over financial reporting of Mr. Cooper Group Inc., included in its Annual Report (Form 10-K) for the year ended December 31, 2024, filed with the Securities and Exchange Commission.
/s/ Ernst & Young LLP
Dallas, Texas
April 7, 2025
| Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. V71543-TBD 1. To adopt the Agreement and Plan of Merger, dated March 9, 2025, among Rocket Companies, Inc. ("Rocket"), Neptune Merger Sub, Inc., a wholly owned subsidiary of Rocket ("Merger Sub"), and Redfin Corporation ("Redfin"), as may be amended from time to time, pursuant to which Merger Sub will merge with and into Redfin (the “Merger”), with Redfin surviving the Merger as a wholly owned subsidiary of Rocket. The Board of Directors recommends you vote FOR proposals 1 and 2. Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. 2. To approve, on a non-binding advisory basis, the compensation that may be paid or become payable to Redfin's named executive officers in connection with the proposed Merger. For Against Abstain ! ! ! ! ! ! REDFIN CORPORATION REDFIN CORPORATION 1099 STEWART STREET, SUITE 600 SEATTLE, WA 98101 VOTE BY INTERNET Before The Meeting - Go to www.proxyvote.com or scan the QR Barcode above Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time the day before the meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and create an electronic voting instruction form. During The Meeting - Go to www.virtualshareholdermeeting.com/RDFN2025SM You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. Eastern Time the day before the meeting date. Have your proxy card in hand when you call and follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. SCAN TO VIEW MATERIALS & VOTEw |
| Important Notice Regarding the Availability of Proxy Materials for the Virtual Special Meeting: The Notice and Proxy Statement is available at www.proxyvote.com. V71544-TBD Redfin Corporation Virtual Special Meeting of Stockholders [•], 2025 [•] PT This proxy is solicited by the Board of Directors The stockholder hereby appoints Glenn Kelman, Chris Nielsen, and Anthony Kappus, or any of them, as proxies, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of common stock of Redfin Corporation that the stockholder is entitled to vote at the Virtual Special Meeting of Stockholders to be held at [•] PT on [•], 2025, online at www.virtualshareholdermeeting.com/RDFN2025SM, and any adjournment or postponement thereof. This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors' recommendations. Continued and to be signed on reverse side |
Exhibit 99.2
200 West Street | New York, NY 10282-2198
Tel: 212-902-1000 | Fax: 212-902-3000

April 7, 2025
Board of Directors
Redfin Corporation
1099 Stewart Street, Suite 600
Seattle, WA 98101
| Re: |
Initially Filed Registration Statement on Form S-4 of Rocket Companies, Inc., filed April 7, 2025 (the “Registration Statement”) |
Ladies and Gentlemen:
Reference is made to our opinion letter, dated March 9, 2025 (“Opinion Letter”), with respect to fairness from a financial point of view to the holders (other than Rocket Companies, Inc. (“Rocket”) and its affiliates) of the outstanding shares of common stock, par value $0.001 per share, of Redfin Corporation (the “Company”) of the exchange ratio of 0.7926 shares of Class A common stock, par value $0.00001 per share, of Rocket pursuant to the Agreement and Plan of Merger, dated as of March 9, 2025, by and among Rocket, Neptune Merger Sub, Inc., a wholly owned subsidiary of Rocket, and the Company.
The Opinion Letter is provided for the information and assistance of the Board of Directors of the Company in connection with its consideration of the transaction contemplated therein. We understand that the Company has determined to include our opinion in the Registration Statement. In that regard, we hereby consent to the reference to our Opinion Letter under the captions “Summary — Opinion of Redfin’s Financial Advisor”, “Risk Factors”, “The Merger — Background of the Merger”, “The Merger — Redfin’s Reasons for the Merger; Recommendation of the Merger by the Redfin Board”, “The Merger – Redfin Management Unaudited Prospective Financial Information”, “The Merger — Opinion of Redfin’s Financial Advisor” and “The Merger Agreement – Representations and Warranties” and to the inclusion of the Opinion Letter in the Proxy Statement/Prospectus included in the Registration Statement. Notwithstanding the foregoing, it is understood that our consent is being delivered solely in connection with the filing of the Registration Statement and that our Opinion Letter is not to be used, circulated, quoted or otherwise referred to for any other purpose, nor is it to be filed with, included in or referred to, in whole or in part in any registration statement (including any subsequent amendments to the Registration Statement), proxy statement or any other document, except in accordance with our prior written consent. In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933 or the rules and regulations of the Securities and Exchange Commission thereunder.
| Very truly yours, | |
| /s/ Goldman Sachs & Co. LLC | |
| (GOLDMAN SACHS & CO. LLC) |