Form 4: Redfin Director Julie Bornstein Reports Post-Merger Share and Option Conversion

Redfin Director Julie Bornstein reported the disposition of 85,722 common shares and 20,000 stock options following Redfin Corporation's merger into a wholly-owned subsidiary of Rocket Companies, Inc. on July 1, 2025.

Summary

• Julie Bornstein, a Director of Redfin Corporation, reported changes in her beneficial ownership of Redfin securities.
• On July 1, 2025, 85,722 shares of Redfin Common Stock were disposed of.
• This disposition occurred as a result of the merger between Redfin Corporation and Neptune Merger Sub, Inc., a wholly-owned subsidiary of Rocket Companies, Inc., making Redfin a wholly-owned subsidiary of Rocket Companies.
• Each outstanding share of Redfin Common Stock was converted into the right to receive 0.7926 shares of Rocket Companies Class A Common Stock.
• Additionally, 20,000 stock options to purchase Redfin Common Stock, which were fully vested and exercisable with an exercise price of $8.46, were also disposed of.
• These stock options were assumed by Rocket Companies and converted into options to acquire Rocket Companies Common Stock, adjusted by the 0.7926 exchange ratio.
• Following these transactions, Julie Bornstein's direct beneficial ownership of Redfin Common Stock and stock options is 0.

Sentiment

Score: 5

Explanation: The document is a factual report of a completed corporate action (merger) and associated insider transaction. It is neutral in tone, simply reporting the mechanics of the share and option conversion post-merger.

Positives

• The completion of the merger indicates a successful strategic transaction for Redfin, transitioning it into a wholly-owned subsidiary of Rocket Companies.
• Existing stock options were assumed and converted by the acquiring company, preserving their value for option holders.

Negatives

• Redfin Common Stock is no longer independently traded, as it has been converted into shares of Rocket Companies.

Future Outlook

The document reports a completed merger, indicating Redfin Corporation is now a wholly-owned subsidiary of Rocket Companies, Inc. Future performance and strategic direction for the former Redfin operations will be integrated into Rocket Companies' overall strategy and financial reporting.

Management Comments

• The filing details actions taken pursuant to the Agreement and Plan of Merger, dated March 9, 2025, which resulted in Redfin becoming a wholly-owned subsidiary of Rocket Companies, Inc. Each Redfin common stock share was converted into 0.7926 shares of Rocket Companies Class A Common Stock, and Redfin stock options were assumed and converted by Rocket Companies.

Industry Context

This transaction signifies further consolidation within the real estate technology sector, with a major mortgage and real estate services provider, Rocket Companies, acquiring a prominent online real estate brokerage, Redfin. This could lead to integrated service offerings and increased market share for Rocket Companies in the broader housing market ecosystem.

Comparison to Industry Standards

• The merger and subsequent share conversion are standard procedures for corporate acquisitions. The exchange ratio of 0.7926 shares of Rocket Companies Class A Common Stock for each Redfin share reflects the agreed-upon valuation at the time of the merger agreement.
• Similar transactions in the real estate tech space include Zillow's acquisitions (e.g., Trulia) or CoStar's acquisitions (e.g., Homes.com), where target company shares are converted or acquired for cash/stock.

Stakeholder Impact

• Shareholders of Redfin Corporation had their shares converted into Rocket Companies Class A Common Stock, changing their investment vehicle.
• Employees of Redfin Corporation, particularly those with stock options, had their options converted to Rocket Companies options, maintaining their equity incentives under the new ownership structure.
• Customers of Redfin will now be served by a company under the Rocket Companies umbrella, potentially leading to integrated services.

Next Steps

• Integration of Redfin's operations and assets into Rocket Companies, Inc.
• Future financial reporting for the combined entity will reflect Redfin's contribution as a subsidiary of Rocket Companies.

Key Dates

Keywords

Redfin, RDFN, Rocket Companies, Merger, Form 4, Beneficial Ownership, Stock Options, Corporate Acquisition, Real Estate Technology, SEC Filing