Zillow to Acquire Trulia in $3.5 billion all stock deal
The two biggest real estate websites in the United States, Zillow and Trulia have agreed to a deal which will have a massive impact on the market. Zillow has agreed to acquire Trulia in an all-stock deal for $3.5 billion. Zillow Inc. CEO Spencer Rascoff started serious talks with Trulia management six weeks back.
Zillow will have the benefit of having the highest number of listings online. Additionally, the deal will improve its position in the smartphone and mobile devices segment. Both companies have been growing their presence as more and more people search for real estate online.
San Francisco based Trulia ended the day 15.4 percent higher at $65.04. The closing price on Monday valued the company at $2.4 billion. The stock touched 52-week high of $67.5 in yesterday’s trade. Seattle-based Zillow Inc. stock ended nearly a percent higher at $160.32.
Consumers search for information online before making a decision. And websites like Trulia and Zillow have managed to gather reliable information on pricing, availability and other factors important for real estate buyers. And the best point is the way these websites can present the information to clients. Both websites were working closely with real estate professionals to help them grow their business.
After the deal, Zillow will be much ahead of the competition Move Inc. and Redfin Corp. CEO Rascoff added that the deal will help the companies to cut their expenses by nearly $100 million every year. The company also expects to save in terms of hiring. Last year, Zillow acquired New York based Streeteasy.com for $50 million.
Market experts expect the Zillow to register an increase of 60 percent in its revenue at $311 million. Zillow reported a loss of $12.5 million last year which is expected to grow further this year. Trulia reported a loss of $17.8 million last year. Market experts believe that the company will report loss in range of $50-60 million for the current year.
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