Exploring Matterport, Inc. (MTTR) Investor Profile: Who’s Buying and Why?

You're looking at Matterport, Inc. (MTTR) because you want to know who was truly betting on the digital twin leader, and what their payoff was, right? Honestly, the investor profile story for Matterport isn't just about a stock; it's a case study in a successful strategic exit, completed when CoStar Group finalized its acquisition in February 2025. The core question isn't just who was buying, but what they got: a fractional stake in a much larger entity, with former Matterport stockholders expected to own approximately 2.8% to 3.4% of the combined CoStar Group. This is a huge shift from the pre-merger ownership structure, where individual, or retail, investors held a significant stake-around 53%-which is a much higher concentration than you see in most enterprise software companies. So, were those retail investors and the institutions who held the remaining shares buying an independent growth story, or a clear acquisition target? They were buying a company that hit 2024 full-year total revenue of $169.7 million, powered by a record $99.6 million in subscription revenue, which is the kind of sticky, recurring growth that makes a company like CoStar Group open its wallet. Let's dig into the filings to see exactly which funds made the final, profitable bets, and what that 2.8% to 3.4% stake in the new entity defintely means for their portfolio strategy.

Who Invests in Matterport, Inc. (MTTR) and Why?

The investor base for Matterport, Inc. (MTTR) is a fascinating mix, primarily split between large institutions and a highly engaged retail crowd. The near-term investment thesis, however, is almost entirely dominated by the pending acquisition by CoStar Group, Inc. (CSGP), which has shifted the focus from pure growth speculation to a merger arbitrage play.

As of late 2024/early 2025, institutional investors hold a significant stake, accounting for approximately 53.41% of the shares outstanding. This means the stock's price movements and overall stability are heavily influenced by the decisions of these large asset managers.

Here's the quick math on the major institutional players, based on end-of-year 2024 filings:

• The Vanguard Group, Inc.: Holding roughly 27.6 million shares, representing 8.43% of the company.
• Lux Capital Management, LLC: An early investor with approximately 26.1 million shares, or 7.96%.
• BlackRock Institutional Trust Company, N.A.: Holding over 20.2 million shares, equating to 6.18%.

To be fair, the retail investor base is also massive. Individual investors collectively hold a huge portion, with some estimates placing general public ownership around 53% of the shares outstanding earlier in 2024. This kind of high retail involvement often leads to increased volatility, but it also reflects a strong belief in the Mission Statement, Vision, & Core Values of Matterport, Inc. (MTTR). and the long-term potential of the digital twin space.

Investment Motivations: The Arbitrage Effect

The primary motivation for many investors in 2025 isn't Matterport, Inc.'s standalone financials, but the certainty of the buyout. The pending acquisition by CoStar Group, Inc. for $5.50 per share has created a classic merger arbitrage opportunity. Arbitrageurs buy the stock slightly below the offer price, banking on the deal closing to capture the small, low-risk spread.

For those with a longer-term view, the motivation remains Matterport, Inc.'s core market position. The company is a leader in spatial data and the digital twin market, which is projected to have massive growth potential. Even with the acquisition, investors are betting on the combined entity dominating the real estate and built world data market. The company's financial trajectory in 2024 showed strong operational progress, with full-year total revenue reaching a record $169.7 million and subscription revenue growing 14% year-over-year to $99.6 million. That's a powerful sign of a sustainable business model, even if it's still operating at a non-GAAP net loss per share of $0.06.

Strategies: Short-Term Gains vs. Long-Term Vision

The investment strategies currently in play for Matterport, Inc. are split into two distinct camps:

1. Merger Arbitrage (Short-Term Trading):

Many hedge funds and institutional desks are using this strategy. They are buying the stock, which has been trading near the acquisition price, to lock in a small, relatively safe return when the deal closes. For example, some funds have been noted to engage in this 'pure merger arbitrage play.' This strategy is about capital preservation and marginal gains, not growth. It's defintely a short-term trade.

2. Growth and Value Investing (Long-Term Holding):

This group includes the large index funds like Vanguard and BlackRock, along with the core retail base. Their motivation is the long-term value of the digital twin technology. They see the acquisition as a positive catalyst, placing Matterport, Inc.'s technology under the umbrella of a much larger, profitable real estate data giant. They are holding for the future value of the combined company, not just the $5.50 cash and stock offer. They believe the market for digitizing the built world, with over 50.7 billion square feet under management by Matterport, Inc. in 2024, is still in its early innings.

The presence of both types of investors creates a unique dynamic. Here is a simplified breakdown of the investment landscape:

The immediate action for any investor is to understand which of these three camps they fall into. If you are holding for the long haul, the acquisition is a positive structural change. If you are a short-term trader, the arbitrage window is narrowing as the deal approaches its close.

Institutional Ownership and Major Shareholders of Matterport, Inc. (MTTR)

You need to know who was buying Matterport, Inc. (MTTR) and why, but the most important fact for your investment decision is this: the public company no longer exists. CoStar Group completed its acquisition of Matterport, Inc. on February 28, 2025, and the stock was delisted from Nasdaq shortly after. This means the investor profile is now a post-mortem of who held the stock right before the definitive change of control.

Leading up to the acquisition in the 2025 fiscal year, institutional investors-the mutual funds, pension funds, and asset managers like BlackRock-held a significant position. Their collective ownership stood at approximately 53.41% of the total shares outstanding. This high percentage is typical for a technology company, especially one that came to market via a Special Purpose Acquisition Company (SPAC), which often relies on large institutional Private Investment in Public Equity (PIPE) deals.

The total shares outstanding at the time were around 327.62 million. For perspective, the company's market capitalization was approximately $1.77 billion as of November 16, 2025, based on the last reported figures before the delisting. The top institutional holders were a mix of early venture capital backers and large asset managers.

Here's a look at the key players who shaped the pre-acquisition shareholder base:

• Lux Capital Management, LLC: An early and significant backer, holding around 8.5% of shares outstanding as of early 2024.
• BlackRock and Fidelity Management & Research Company LLC: Both were anchor investors in the original PIPE transaction that took Matterport public, signaling early confidence from top-tier asset managers.
• Advisor Group Holdings, Inc.: Listed as one of the institutional owners in the final period leading up to the acquisition.

The Final Change in Ownership: The CoStar Acquisition

The most dramatic change in ownership for Matterport, Inc. was not a gradual shift but a single, definitive event: the acquisition by CoStar Group. Instead of increasing or decreasing stakes in the open market, institutional investors' positions were converted into the cash or stock consideration offered in the merger. This is why you see a flurry of -100.00% position changes in institutional filings around the May 2025 reporting period for Q1/Q2 2025-the shares were sold to CoStar.

This final transaction essentially liquidated the public holdings of all institutional investors, ending their direct ownership. You can defintely see the full picture of the company's financial state that led to this outcome by reading Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors.

The story here isn't about a slow exit; it's about a corporate buyout.

Impact of Institutional Investors on Strategy and Stock Price

Institutional investors played two critical roles in Matterport, Inc.'s journey: validation and governance. First, having firms like BlackRock and Fidelity participate in the initial PIPE deal-a $295 million commitment-provided crucial market validation and capital, which Matterport used to accelerate its global enterprise growth and invest in its software and AI platform. This cash infusion was instrumental in driving the company's growth in 2024, which saw total revenue hit $43.8 million in Q3 2024 and Annual Recurring Revenue (ARR) cross the $100 million milestone.

Second, large institutional holders, especially those with an activist bent, exert significant pressure on management and the board of directors. While they may not have a majority interest-individual investors held a large portion of the float-their collective 53.41% holding meant they had a powerful voice in strategic decisions. When a company is acquired, the institutional investors' primary role is to evaluate the offer price and vote on the merger. Their acceptance of the CoStar Group deal confirms that they saw the acquisition as the most favorable outcome for their investment, effectively endorsing the sale as the best path to maximize shareholder return at that time.

Here's the quick math on their influence:

Their collective decision to accept the acquisition offer was the final, most impactful action they took, cementing the company's exit from the public market.

Key Investors and Their Impact on Matterport, Inc. (MTTR)

The investor profile for Matterport, Inc. (MTTR) in the 2025 fiscal year is defintely a story of an exit, not a standalone growth play. The most significant investor action was the finalization of the acquisition by CoStar Group, Inc. on February 28, 2025, which meant all shareholders were essentially forced to sell their stake.

The investor base leading up to this point split into two key camps: the original, long-term institutional holders who backed the company's vision, and the short-term merger arbitrage (M&A arbitrage) funds who bought in for a quick, low-risk return once the deal was announced. The long-term holders, which included major firms like BlackRock, ultimately voted to approve the sale, prioritizing a guaranteed cash-and-stock payout over the risks of continued independence.

The Original Backers and Their Payday

The initial investor enthusiasm for Matterport, Inc. stemmed from its 2021 special purpose acquisition company (SPAC) merger, which brought in several high-profile institutional investors (the Private Investment in Public Equity, or PIPE). These investors were betting on the long-term potential of the spatial data and digital twin market.

• BlackRock: Funds managed by BlackRock were anchor investors in the original PIPE, signaling strong institutional confidence in the technology.
• Tiger Global Management, LLC: Another major name from the original PIPE, indicating a focus on high-growth, disruptive technology.
• Fidelity Management & Research Company LLC: A long-term player whose investment validated the company's market position.

For these long-term holders, the acquisition by CoStar Group, Inc. at an approximate total value of $1.6 billion provided a clear, if not spectacular, return on their investment. It was a clean way out of a stock that had struggled post-SPAC.

The Merger Arbitrage Play of Early 2025

The most active buyers of Matterport, Inc. stock in late 2024 and early 2025 were the merger arbitrageurs. These specialized hedge funds and traders weren't buying the company's fundamentals (though its Q4 2024 Annual Recurring Revenue hit a record $104.2 million), but rather the certainty of the deal closing.

They bought Matterport, Inc. shares for less than the final acquisition price of $5.50 per share to capture the difference, known as the deal spread. By January 2025, the stock was trading around $5.21 per share, meaning a new arbitrage investor stood to make about a 5% return in 60 days if the deal closed as expected.

Here's the quick math on the final shareholder compensation for each share held:

The arbitrage play was the last significant buying activity for Matterport, Inc. stock. Once the acquisition completed, the stock ceased trading, effectively removing the public investment opportunity.

Investor Influence: The Ultimate Decision

The key influence of Matterport, Inc.'s investors in 2025 was their vote to approve the acquisition. This was the single most impactful decision they could make. The shareholders approved the transaction on July 26, 2024, which set the stage for the 2025 closing.

For a deeper dive into the company's financial standing leading up to the acquisition, you should check out Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors.

The investor base essentially determined that joining CoStar Group, Inc., a larger, profitable entity, offered a better risk-adjusted return than continuing as a standalone, unprofitable company. This is a classic example of a shareholder base prioritizing a defined exit over the long, uncertain path to profitability. The acquisition by CoStar Group, Inc. was the final word on Matterport, Inc.'s public market journey.

Market Impact and Investor Sentiment

The investor profile for Matterport, Inc. (MTTR) is no longer about active trading; it's an analysis of a successful exit, as the company was acquired by CoStar Group, Inc. The stock was suspended effective March 3, 2025, following the merger closure on February 28, 2025. The final sentiment from major shareholders was decisively positive, as they overwhelmingly approved the merger, locking in a premium exit.

The acquisition, valued at an estimated $1.6 billion in enterprise value, provided a clear, near-term return for investors. The shareholder vote on July 26, 2024, was a landslide, with 197,305,400 votes in favor of adopting the Merger Agreement, versus only 1,507,812 against. That's a strong signal of confidence in the deal's value. You got a cash-and-stock payout, so you're now a shareholder in CoStar Group, Inc. (CSGP) as well.

Investor Sentiment: The Exit Premium

Major shareholders, including both institutional and individual investors, held a positive sentiment toward the acquisition. This wasn't a bet on long-term organic growth anymore; it was a bet on the deal closing. Before the acquisition, individual investors held the largest stake, at approximately 53% of the shares, while institutions held about 36%. The institutional ownership structure showed a shift in the lead-up, with some funds reducing their positions post-merger announcement, which is typical as arbitrageurs step in to capture the final spread.

• Positive Sentiment Driver: The merger consideration offered a clear premium.
• Deal Value: Shareholders received $2.75 in cash plus 0.03552 shares of CoStar Group, Inc. common stock for each Matterport, Inc. share.
• Implied Price: The initial deal terms reflected an estimated value of $5.50 per share.

This positive sentiment was essentially a vote for certainty over continued volatility, a smart move for a company that was still not expected to be profitable in the 2024 fiscal year. For more on the strategic alignment that drove this exit, you can review the Mission Statement, Vision, & Core Values of Matterport, Inc. (MTTR).

Recent Market Reactions: The Merger Trade

The stock market's reaction to the final stages of the acquisition was predictable: the price converged to the deal value. On February 27, 2025, the day before the merger closed, the stock price was $5.38 per share. This price was very close to the implied deal value, showing the market had high confidence the merger would complete without a hitch. Here's the quick math on the near-term gain from the announcement to the close:

This 11.39% increase in the months leading up to the closure shows the market fully pricing in the acquisition premium. The stock's trading was halted immediately following the after-hours session on February 27, 2025. That's the end of the line for the MTTR ticker.

Analyst Perspectives on the Exit

Analyst perspectives shifted from evaluating Matterport, Inc.'s standalone potential to assessing the certainty of the merger and the combined entity's future. The consensus rating on Matterport, Inc. was a 'Hold' just before the closure, with an average price target of approximately $5.50 to $5.61. This target was essentially a reflection of the acquisition price, not a forecast of independent growth.

What this estimate hides is the underlying concern about profitability. Matterport, Inc. reported a Q4 2024 loss, with a non-GAAP Earnings per Share (EPS) of ($0.02), missing the consensus estimate of ($0.01). The analysts' 'Hold' was a pragmatic stance, recognizing the fundamental challenges while acknowledging the value locked in by the acquisition. Deutsche Bank, for example, had raised its price target to $5.50 following the merger announcement. The consensus was clear: the value was in the exit, not the next quarter's earnings. Your next move is to evaluate CoStar Group, Inc. as a new holding.