Zillow to Acquire Trulia for $3.5 Billion in Stock
By Jing Cao and Pui-Wing Tam via Bloomberg
Zillow Inc. (Z) agreed to purchase Trulia Inc. (TRLA) for $3.5 billion in an all-stock deal that is designed to make the combined entity the largest in online real estate advertising.
The deal positions a unified Zillow and Trulia to capture a larger share of digital real estate ads as more people shift house hunting onto the Web and property agents deploy more marketing dollars onto the Internet. While there are other real estate websites such as Move Inc. and Redfin Corp. that are growing, Zillow and Trulia are the top two most-visited property sites in the U.S. tracked by ComScore Inc.
Trulia shareholders will receive 0.444 shares of Zillow foreach share of Trulia, the… Read More
A combination makes sense as Zillow and Trulia are the two biggest companies in the online real estate market and have “virtually identical” business models, Tom White, an analyst at Macquarie Capital USA, said last week. “This could pave the way to these companies becoming more profitable more quickly.”