\begin{align}
(z-z_1)(\bar z-\bar z_1)&=k^2(z-z_2)(\bar z-\bar z_2)\\
(k^2-1)z\bar z-(k^2z_2-z_1)\bar z-(k^2\bar z_2-\bar z_1)z&=z_1\bar z_1-k^2z_2\bar z_2
\end{align}
If $k\ne 1$, let $\displaystyle \beta=\frac{k^2z_2-z_1}{k^2-1}$. The above equation can be written as
\begin{align}
z\bar z-\beta\bar z-\bar \beta z+\beta\bar \beta&=\frac{z_1\bar z_1-k^2z_2\bar z_2}{k^2-1}+\beta\bar\beta\\
(z-\beta)(\bar z-\bar \beta)&=\frac{z_1\bar z_1-k^2z_2\bar z_2}{k^2-1}+\beta\bar\beta\\
|z-\beta|^2&=\frac{z_1\bar z_1-k^2z_2\bar z_2}{k^2-1}+\beta\bar\beta\\
\end{align}
Note that
\begin{align}
\frac{z_1\bar z_1-k^2z_2\bar z_2}{k^2-1}+\beta\bar\beta&=\frac{z_1\bar z_1-k^2z_2\bar z_2}{k^2-1}+\frac{(k^2z_2-z_1)(k^2\bar z_2-\bar z_1)}{(k^2-1)^2}\\
&=\frac{(k^2-1)z_1\bar z_1+(k^2-k^4)z_2\bar z_2}{(k^2-1)^2}\\
&\qquad +\frac{k^4z_2\bar z_2-k^2z_1\bar z_2-k^2\bar z_1 z_2+z_1\bar z_1}{(k^2-1)^2}\\
&=\frac{k^2(z_1-z_2)(\bar z_1-\bar z_2)}{(k^2-1)^2}
\end{align}
The eequation can be written as
\begin{align}
|z-\beta|^2&=\frac{k^2|z_1-z_2|^2}{(k^2-1)^2}\\
|z-\beta|&=\frac{k|z_1-z_2|}{|k^2-1|}
\end{align}
and represents a circle.