For some time, both Trulia and Zillow have dominated the world of online real estate websites. Now, that domination is set to extend even further. Trulia was is being sold to Zillow in a $3.5 billion stock-for-stock deal. At the time of writing, both Trulia and Zillow's boards have already approved this deal. If the deal is approved by the shareholders as well, Zillow's biggest competitor will now be their own site.
This move creates a digital real estate market that is dominant in the United States market, as the closest competitor will be Realtor.com which the National Association of Realtors runs. Both of the companies have large customer bases as Zillow has shown a stable of 83 million unique users in the month of June, and Trulia in the same month had 54 million. Mobile marketing has been widely in use by both companies.
Both Zillow and Trulia have been prominent helping consumers find a value for their homes based on comparisons in local markets, as well as listing their homes. The two companies have some market overlap, but essentially cover two separate markets.
For example roughly one half of the visitors to the Trulia site do not visit the Zillow site at all. Nearly two thirds of the Zillow visitors have nothing to do with Trulia. By combining the two companies, the plan is to maintain the separate marketing presence, offer products that suit those markets, and continue to maximize free content distribution across the different marketing platforms.
Zillow told the New York Times business reporter that the goal of Zillow is to create a more robust and interactive real estate portfolio that consumers can count on even more for their marketing information and property analysis. The price of the purchase, $3.5 billion is a premium of 25% above the closing price of Trulia on the prior Friday. The stock had jumped quite a bit on rumors of the takeover.
Many see this as an excellent move for Zillow. Because Trulia was their primary competition, they will now completely dominate the online real estate marketplace. They're primed for unprecedented growth in the years to come, and it will be interesting to see how they continue to built their site further. It also may be a good move for Trulia. The $3.5 billion dollar price is an excellent deal, even when the stock jump they experienced after takeover rumors is taken into account. It's a profitable move, and should make a lot of board members and stock owners happy.
This move creates a digital real estate market that is dominant in the United States market, as the closest competitor will be Realtor.com which the National Association of Realtors runs. Both of the companies have large customer bases as Zillow has shown a stable of 83 million unique users in the month of June, and Trulia in the same month had 54 million. Mobile marketing has been widely in use by both companies.
Both Zillow and Trulia have been prominent helping consumers find a value for their homes based on comparisons in local markets, as well as listing their homes. The two companies have some market overlap, but essentially cover two separate markets.
For example roughly one half of the visitors to the Trulia site do not visit the Zillow site at all. Nearly two thirds of the Zillow visitors have nothing to do with Trulia. By combining the two companies, the plan is to maintain the separate marketing presence, offer products that suit those markets, and continue to maximize free content distribution across the different marketing platforms.
Zillow told the New York Times business reporter that the goal of Zillow is to create a more robust and interactive real estate portfolio that consumers can count on even more for their marketing information and property analysis. The price of the purchase, $3.5 billion is a premium of 25% above the closing price of Trulia on the prior Friday. The stock had jumped quite a bit on rumors of the takeover.
Many see this as an excellent move for Zillow. Because Trulia was their primary competition, they will now completely dominate the online real estate marketplace. They're primed for unprecedented growth in the years to come, and it will be interesting to see how they continue to built their site further. It also may be a good move for Trulia. The $3.5 billion dollar price is an excellent deal, even when the stock jump they experienced after takeover rumors is taken into account. It's a profitable move, and should make a lot of board members and stock owners happy.
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