Quicken Loans Rumored to be Going Public

[Satiricalivory]

It does not automatically mean more jobs. You have no idea what they plan to do with their capital. They could use it to acquire other companies and shut them down.

You have no idea either but you're sitting here and acting like you do.

The second part of your comment makes no sense, Gilbert is gonna start buying and shutting down companies in Detroit? This is obviously pure nonsense.

The biggest investors in Detroit and the ones who have been doing it correctly for ten years now are about to come into an unimaginable amount of money, oh and they just mentioned how their only goal is to double down on Detroit and whats best for the city. Not sure how you could interpret that as anything other than good.

[iheartthed]

You have no idea either but you're sitting here and acting like you do.

The second part of your comment makes no sense, Gilbert is gonna start buying and shutting down companies in Detroit? This is obviously pure nonsense.

The biggest investors in Detroit and the ones who have been doing it correctly for ten years now are about to come into an unimaginable amount of money, oh and they just mentioned how their only goal is to double down on Detroit and whats best for the city. Not sure how you could interpret that as anything other than good.

Okay.

[Johnnny5]

I'm not sure I see this as a positive. To me it seems like Gilbert's way of diversifying his holdings, likely a direct result of his now questionable health.

[401don]

I'm not sure I see this as a positive. To me it seems like Gilbert's way of diversifying his holdings, likely a direct result of his now questionable health.

It could go either way. Hopefully he uses the money to further diversify Detroit's downtown. He can increase his investment in tech start-ups or bring other small but growing companies to the city. There has always been a danger in having so much of downtown's employment at Quicken. There's reason to expect other mortgage companies to have success copying his online model and taking away market share. Until we see differently, we have lots of history to trust in him.

[Satiricalivory]

I guess all of those who are supposedly so concerned about Dan's decisions didn't watch a second of his speech in February. This is almost funny.

[davewindsor]

If it goes public, what stops them from moving back to Livonia or even to Texas like Comerica where taxes are cheaper and taking their employees with them? Does downtown revert back to the pre-Gilbert days?

[JonWylie]

If it goes public, what stops them from moving back to Livonia or even to Texas like Comerica where taxes are cheaper and taking their employees with them? Does downtown revert back to the pre-Gilbert days?

People need to stop confusing going public with completely giving up control of a company. Gilbert can and should retain majority control in the company and thus control the board.

[313WX]

People need to stop confusing going public with completely giving up control of a company. Gilbert can and should retain majority control in the company and thus control the board.

But that doesn't mean he will. And even if he did, he would still have to answer to shareholdees when making decisions.

[Satiricalivory]

If it goes public, what stops them from moving back to Livonia or even to Texas like Comerica where taxes are cheaper and taking their employees with them? Does downtown revert back to the pre-Gilbert days?

A move would cost them millions of dollars and big talent losses which is the exact opposite of what shareholders want. Some of you act like there are no publicly traded companies in Detroit. I mean come on, I'm really rolling my eyes here now.

[Richard]

A move would cost them millions of dollars and big talent losses which is the exact opposite of what shareholders want. Some of you act like there are no publicly traded companies in Detroit. I mean come on, I'm really rolling my eyes here now.

Why roll the eyes,is ones speculative thoughts better then another’s?

[EGrant]

Dan has been pretty clear about his mission to invest in Detroit. I imagine if there was any near-term risk of the company going public and moving to Livonia, he would not take that chance.

[davewindsor]

A move would cost them millions of dollars and big talent losses which is the exact opposite of what shareholders want. Some of you act like there are no publicly traded companies in Detroit. I mean come on, I'm really rolling my eyes here now.

If it's the opposite of what shareholders want, why did they let Comerica Bank move their HQ to Dallas after growing its roots in Detroit for over 150 years? Any loss of dollars in a move would easily be recovered from the savings in Dallas not having city or state income taxes. And why wouldn't big talent move to Dallas? Big talent would also save money by not paying city or state income taxes in such a move. Right back at ya, you act like there are no publicly traded companies that left Detroit to save on taxes. Eyes roll.

[davewindsor]

Dan has been pretty clear about his mission to invest in Detroit. I imagine if there was any near-term risk of the company going public and moving to Livonia, he would not take that chance.

Hard to do if he sells his majority stake in the company by going public. Dan Gilbert sold his 100% stake in Greektown casino because he needed cash. How do you know he's not going to do the same here? What's the point of an IPO if you're not going to sell off your position? He's better off keeping it private if he wants to keep it.

[Richard]

^ given current interest rates he may have been better off using leverage with what he has,he has also talked about doubling down in Cleveland,but sports franchises are bleeding millions every month.

[313WX]

There was speculation by some that the HQ relocation by Comerica was at least partially driven by politics rather than fiduciary reasons, as the individual who was the CEO at the time is a born and bred Texan.

Yes, the case was made that Comerica wanted to be located in closer proximity to its emerging and rapidly growing markets [[Texas, Arizona and California), but past history has shown that a CEO's preference in locations plays a significant role as well.

Although the executives and a skeleton crew of administrative workers did in fact relocate to Dallas, it should be noted that the meat and potatoes of Comerica's operations are still in Detroit.

[JonWylie]

Hard to do if he sells his majority stake in the company by going public. Dan Gilbert sold his 100% stake in Greektown casino because he needed cash. How do you know he's not going to do the same here? What's the point of an IPO if you're not going to sell off your position? He's better off keeping it private if he wants to keep it.

Easy, sell 49% and keep 51%, retain control and build capital.

[Satiricalivory]

There was speculation by some that the HQ relocation by Comerica was at least partially driven by politics rather than fiduciary reasons, as the individual who was the CEO at the time is a born and bred Texan.

Yes, the case was made that Comerica wanted to be located in closer proximity to its emerging and rapidly growing markets [[Texas, Arizona and California), but past history has shown that a CEO's preference in locations plays a significant role as well.

Although the executives and a skeleton crew of administrative workers did in fact relocate to Dallas, it should be noted that the meat and potatoes of Comerica's operations are still in Detroit.

Yes these are the rumors I've heard as well and I think I believe it. Some of the middle aged wives of the most prominent CEOs wanted to be in Texas. The vast majority of their market share is actually still the Midwest and Michigan. Last I've heard they have not done that well in the south/southwest.

[Satiricalivory]

Eyes roll.

A company that's doing well is not going to uproot their main staff for no reason that's how you drive a business into the ground and go bankrupt and I think the vast majority of people at Quicken are well rooted in Michigan. A great amount are not going to pick up and move that's just logistics and makes no sense for a company to do that for no reason, especially a company that just finished a massive office addition to their building. What ever would be saved in taxes long term would not be worth the disruption. Plus states like Texas have other sorts of taxes to make up their money.

The publicly traded bank Chemical not only moved to the city but brought their merger to Detroit as well. I guess there is indeed some value being headquartered in Detroit and leadership who want to remain here.

[Satiricalivory]

Hard to do if he sells his majority stake in the company by going public. Dan Gilbert sold his 100% stake in Greektown casino because he needed cash. How do you know he's not going to do the same here? What's the point of an IPO if you're not going to sell off your position? He's better off keeping it private if he wants to keep it.

They bought the Greektown casino for a much lower price when it was in the dumps financially. Turned it around and then sold it for a massive profit. The casino business is not really something Dan and friends specialize in and it's kinda risky long-term. He made a genius investment move and it paid off [[especially now considering casinos are in for a rough ride after covid). Again I don't think this is comparable to the company he literally created from nothing.

[iheartthed]

The Dallas move made sense for Comerica because Texas has been the fastest growing state in the 21st century, and Comerica immediately became the second largest bank in the state. Similarly, TCF Chemical Bank moving to Detroit gives them more prominence by being located in a major metropolitan area, especially now that Dupont and Dow have merged, and thus, Dow may not be a solid source of future growth for them.

Quicken is not abandoning Detroit over an IPO. That doesn't make sense.

[davewindsor]

Easy, sell 49% and keep 51%, retain control and build capital.

Why not sell 100% and keep double the money? Isn't this what Gilbert did when he did an IPO with Rock Financial and Intuit bought it out for half a billion and changed the name to Quicken Loans? Intuit mismanaged it and Gilbert bought it back as a private company for almost a tenth of what he sold it for. Now Gilbert wants to take it public again. What if after selling 100% of the IPO it wasn't mismanaged and a new CEO wanted and its shareholders wanted it moved to a cheaper state like what happened to Comerica? You keep putting Gilbert up on a pedestal like he's not here to make money. He already sold the whole company once. Why wouldn't he do it again?? Lather, rinse, repeat.

[Atticus]

The Dallas move made sense for Comerica because Texas has been the fastest growing state in the 21st century, and Comerica immediately became the second largest bank in the state. Similarly, TCF Chemical Bank moving to Detroit gives them more prominence by being located in a major metropolitan area, especially now that Dupont and Dow have merged, and thus, Dow may not be a solid source of future growth for them.

Quicken is not abandoning Detroit over an IPO. That doesn't make sense.

I am going to have to disagree with you on this one. The Comerica move was made because the CEO was a Texan and wanted to bring the company to his home. I am sure there were some incentives Comerica received from Texas for making the move, along with lower state taxes. But using that argument, every company should move there.

Having the C-suite in Dallas or Detroit does not really impact the company’s ability to grow. The move was personal, and let’s call a spade a spade, Comerica was a bad corporate citizen that made a move for minimal corporate gain [[other than to reduce the CEOs commute time).

[davewindsor]

The Dallas move made sense for Comerica because Texas has been the fastest growing state in the 21st century, and Comerica immediately became the second largest bank in the state. Similarly, TCF Chemical Bank moving to Detroit gives them more prominence by being located in a major metropolitan area, especially now that Dupont and Dow have merged, and thus, Dow may not be a solid source of future growth for them.

Quicken is not abandoning Detroit over an IPO. That doesn't make sense.

Comerica abandoning Detroit after being headquartered in Detroit for over 150 years makes sense, but another financial institution like Quicken Loans that's been in the city for only a decade abandoning Detroit after an IPO makes no sense whatsoever. Boy, your reasoning makes tonnes of sense there.

[Satiricalivory]

I am going to have to disagree with you on this one. The Comerica move was made because the CEO was a Texan and wanted to bring the company to his home. I am sure there were some incentives Comerica received from Texas for making the move, along with lower state taxes. But using that argument, every company should move there.

Having the C-suite in Dallas or Detroit does not really impact the company’s ability to grow. The move was personal, and let’s call a spade a spade, Comerica was a bad corporate citizen that made a move for minimal corporate gain [[other than to reduce the CEOs commute time).

I wish I could like this comment.

I go out of my way to not do business with Comerica since 2007 because of this. It makes the TCF victory sweeter because it's like a big middle finger to Comerica.

[Ray1936]

Didn't Comerica start out as Detroit Bank and Trust? Just askin'.