Zillow Acquires HotPads.com
Online real estate tracking company Zillow has acquired HotPads for $16 million in cash. This is Zillow’s sixth acquisition in under 2 years. Zillow previously acquired companies likes Mortech, Buyfolio, RentJuice, and PostLets. HotPads raised $2.3 million in funding 5 years ago from Meakem Becker Venture Capital and several other investors. HotPads receives around 2.8 million unique visitors. Zillow hits around 36 million monthly unique visitors.
“This acquisition represents a significant step-change for Zillow Rentals, allowing us to dramatically increase the number of leads we send to landlords. HotPads has a younger, complementary and rental-focused audience. Now Zillow will become even more relevant to consumers at the beginning of their real estate life cycle,” stated Zillow CEO Spencer Rascoff. “In addition, by acquiring an amazing engineering team, with a deep understanding of how people search for rentals and become tenants, we expect to accelerate our innovation and monetization of our rental marketplace.”
HotPads has around 19 employees and the company will continue to operate in San Francisco. HotPads will be integrated into Zillow’s rental business. Zillow is currently trading at around $26, which is above their $20 IPO price in July 2011. Zillow employs around 500 people.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry