Why is the Matterport Inc stock price soaring today? What Matterport's news means for markets

The price of Matterport Inc (Nasdaq: MTTR) is up a whopping 175% today, to trade at a new high of $4.80 per share.

On April 22^nd, Matterport stock opened at a price of $4.05 – a quantum leap up from its Friday 19^th closing price of $1.74.

Then, the stock soared to a high of $4.99 yesterday, before closing at $4.80.

And that’s not all. In total, Matterport Inc has gained over 160% in its stock price in the past few days, and almost 170% in the past month alone. But why?

Matterport acquired by CoStar

It turns out that Matterport is being bought by CoStar Group, Inc. – the online real estate company behind Apartments.com, LoopNet, CoStar, and Homes.com.

Yesterday, CoStar Group posted a press release announcing that it was acquiring all outstanding shares of Matterport in a cash and stock transaction valued at $1.6 billion, or $5.50 per share.

As part of the deal, Matterport stockholders will receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock.

The future of real estate is here

The deal is not just significant for Matterport – it has profound implications for the way house-hunting will be done around the world from now on.

Andy Florance, founder and CEO of CoStar Group, said the following regarding the acquisition:

With further funding of Matterport's unique and patented technology, virtual house tours could enter entirely new territory, levelling up the entire industry of real estate with new virtual and digital experiences that have little, if anything, to do with bricks and mortar.

About Matterport and CoStar

CoStar has used Matterport technology in its house tours for a number of years now. As Matterport describes itself on its website: