Zillow to Acquire Trulia for $3.5 Billion in Stock

According to 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.

Trulia shareholders will receive 0.444 shares of Zillow for each share of Trulia, the companies said in a statement today. That’s equivalent to Zillow offering $70.53 a share for Trulia, or 25 percent above Trulia’s closing price of $56.35 on July 25. Zillow shareholders will own two-thirds of the combined company, while Trulia stockholders will own a third.

Trulia Chief Executive Officer Pete Flint will continue leading the site and join Zillow’s board. He will report to Zillow CEO Spencer Rascoff, the companies said. A second Trulia board member, who hasn’t been determined yet, will also join Zillow’s board.

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.

Read more about this at: http://www.bloomberg.com/news/2014-07-28/zillow-to-acquire-trulia-for-3-5-billion-in-stock.html

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Posted on July 28, 2014, in Business News, News & Politics and tagged , , . Bookmark the permalink. Comments Off on Zillow to Acquire Trulia for $3.5 Billion in Stock.

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