Last Thursday Zillow offered 2,000 million. It was not enough to Trulia. On Monday the deal was closed by 3500, 2.604 million euros. The merger between the two dominant platforms in real estate in USA rumored for weeks, but it will be effective in 2015, when a giant buy, sell, rent, homes and apartments is believed. Although both work on the computer, it is in the mobile where they are experiencing greater growth and vision for exploiting follow this format.
Both applications will continue to operate independently, with the same CEOs. Pete Flint of Trulia is under the direction of Spencer Rascoff Zillow. The intention is not to lose the community generated in each, and improve the ability to negotiate prices for advertisements and promotions together, the major source of income for these two applications. Rascoff This was confirmed in a call with analysts.
Zillow has paid a price 24% above the stock price at Friday’s close at $ 56.35 (41.92 euros). Rascoff, through a note on the website of the firm considers it a great opportunity, “Let’s combine our resources to innovate further and benefit consumers.” The acquisition has more to do with the future, with the development of software for home only to find that your current smartphone performance. The combined revenues of the two companies does not reach 4% of marketing investment in the housing market, estimated at 12,000 million. It is estimated that the cost savings will be around 100 million dollars (74 euros) a year.
While Zillow has 83 million active users, Trulia reaches 54 At first glance the purchase could prevent competition and is pending approval by the authorities. Direct from both firms insist that it will not, that the use is different. Half of users do not wear Trulia Zillow. While two-thirds of those entering the second have no interest in Trulia.
That is the point they are most interested buyers. Making Zillow focus on getting more and better information of the houses, both for the current owners with estimated price of your home, and for potential buyers. While Trulia focus on the search for rental and purchase on a shorter term.
Last year already bought Zillow Easy Street, specializing in New York, for $ 50 million. Lovely, minimalist design, freezes a different option increasingly attractive sector. Zillow’s founders, Richard Barton and Lloyd Frink, maintain control of the company.