Zillow Group Inc. CEO Spencer Rascoff, who co-founded the real estate and rental marketplace company in 2005, has stepped down and will be replaced by Rich Barton, another Zillow co-founder who served as CEO until 2010.
Barton has been serving as executive chairman of the company since stepping down as CEO in 2010. Rascoff will remain on Zillow Group’s board of directors. He led the company through its IPO and some 15 acquisitions since taking on the CEO role some nine years ago, growing the company from 200 employees to more than 4,000 –- and growing revenue from $30 million to $1.3 billion.
The shakeup comes after Zillow reported disappointing earnings Feb. 21. The Seattle-based company lost $97.7 million in its just completed fourth quarter, about $20 million more than it lost in the same quarter last year. Company shares were down about 2 percent in after-hours trading.
Barton founded travel website Expedia Inc. in 1994 and co-founded jobsite Glassdoor in 2007. Rascoff was the winner of Seattle Business magazine’s 2015 Executive Excellence Awards.
“We created Zillow Group in 2005 to make the real estate shopping and purchase process easier,” Barton said. “Much of our original dream is just now becoming possible. We are at an inflection point in this quest, and the time is right to shuffle leadership seats.”
Zillow last year acquired Mortgate Lenders of America to grow its Zillow Offers product, where
Zillow has built one of the largest real estate and home-related platforms on the web and focuses on all stages of the home lifecycle, from renting, buying, selling and financing.