It's officially official, real estate media company Zillow has agreed to pay a crap-ton of money, in the form of stocks, to purchase the other real estate website Trulia. In what adds up to be $3.5B (yes, that's a big B, for billion), it essentially makes make Zillow the Facebook of the real estate website game — just keep buying up that competition. It's also $1.5B higher than the $2B that was initially rumored. Zillow and Trulia maintain that they will remain true to their individual consumer brands, but people (mainly brokers) are more than a little worried about what it means for real estate market as a whole.
Combined, Zillow (53.8M) and Trulia (31.6M) amount for the 1st and 2nd most monthly unique visitors among real estate companies in the US. Prior to the deal being formalized, Bidness Etc. stated the obvious, but nonetheless important, "it will create an entity with unparalleled dominance in the industry."Zillow purchased the New York based StreetEasy for $50M, which from the looks of today's deal, looks like a bargain considering it allowed them take over the market in New York City. So, if Zillow is Facebook, does that make Trulia Instagram?
· Zillow acquires Trulia for $3.5B in stock [The Real Deal]
· The Zillow-Trulia Merger Could Radically Reduce America's Realtor Population [Business Insider]