Zillow acquries Trulia for $3.5 Billion

Zillow acquries Trulia for $3.5 Billion

Zillow acquries Trulia for $3.5 Billion

Zillow made a stock deal about acquiring Trulia for about $3.5 Billion. Under terms of deal, Zillow will pay 0.444 of one of its shares for each Trulia share with worth $70.53, a premium of 25 percent.

By ComScore monitoring are Zillow and Trulia, two most visitted real estate servers.

“The companies know each other very well,” Spencer Rascoff, Zillow’s chief executive, said by telephone. “We’ve been competitors and rivals for nine years, but I’ve always had respect for them.”

“Both companies are coming at this from a lot of strength and momentum,” Mr. Rascoff said. “When we approached them, I think they were both very open-minded about it.”

Mr. Rascoff said he did not expect the merger will be issues with antitrust regulators. The revenue of the merged company — $341.2 million last year – represents only a tiny part of what he reckons is the $12 billion the real estate industry spends annually on marketing .

Zillow’s advisors were Goldman Sachs and the law firms Shearman & Sterling and Perkins Coie. Trulia was advised by JPMorgan Chase and Qatalyst Partners, the investment bank co-founded by Frank Quattrone, as well as the law firms Goodwin Procter and Wilson Sonsini Goodrich & Rosati.

Mr. Stakebay says :

This deal is expected to realize about $100 million in cost savings by 2016. The newly enlarged Zillow will have an even bigger platform for sellers and real estate agents to list home offerings and for advertisers, while combining the two companies’ nascent rental-search offerings.

 

 

CEO of Zillow …………………………..Spencer Rascoff ……………………….(2010-present)……………………………..$10 587 170 (2013)

CEO fo Trulia……………………………….Peter Flint …………………………. (2005-present)……………………………… $9 773 304 (2013)

 

ZILLOW

TRULIA

Revenue

197.54 million (2013)

$ 143.73 million (2013)

Operating income

-16.95 million (2013)

$ -24.14 million (2013)

Profit

-12.45 million (2013)

$ -17.9 million (2013)

Total assets

$ 608.06 million (2013)

$ 655.41 million (2013)

Total Equity

$ 567.796 million (2013)

$ 381.07 million (2013)

Employees

817 (2013)

1.036 (2013)

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