Services
Zillow, Trulia Merge in All-Stock Deal Worth $3.5 Billion
Published:
Last Updated:
Online real estate listing firms Zillow Inc. (NASDAQ: Z) and Trulia Inc. (NYSE: TRLA) have entered a definitive agreement under which Zillow will acquire Trulia in an all-stock transaction valued at $3.5 billion. Trulia shareholders will receive 0.444 shares of class A common stock in Zillow for each share of Trulia stock they now own and will own about 33% of the combined company once the deal closes. According to the announcement, the deal offers a 25% premium to Trulia’s closing price last Friday.
The combined company will maintain both the Zillow and Trulia brands, and Trulia’s CEO will remain in his position, but reporting to Zillow CEO Spencer Rascoff, who said:
Both companies have been enormously successful in creating compelling consumer brands and deep industry partnerships, but it’s still early days in the world of real estate advertising on mobile and Web. This is a tremendous opportunity to combine our resources and achieve even more impressive innovation that will benefit consumers and the real estate industry.
Although the two firms are primarily media companies, Trulia also offers software to real estate agents that helps them manage the sales process. Neither firm charges to list properties on it site, but they make money by charging real estate agents to show their contact information along with property searches.
The combined company will be the largest online real-estate firm by far. Zillow had nearly 54 million unique visitors to its website in June, and Trulia racked up nearly 32 million, according to comScore and The Wall Street Journal.
Zillow shares were trading down about 3% in Monday’s premarket, at $154.27 in a 52-week range of $70.28 to $159.26. The high was set last Friday.
Trulia shares were trading up nearly 17% to $65.79, above the 52-week range of $26.35 to $57.47. Trulia’s high was posted last Friday as well.
ALSO READ: Cities With the Most Abandoned Homes
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.