Zillow Inc (Z) Buys StreetEasy For $50 Million
Zillow Inc (NASDAQ:Z) has acquired StreetEasy for $50 million in cash. The company also applied for a follow-on offering of another 2.5 million shares of Class A common stock. This is equivalent to around $228 million based on the company’s closing stock price of $91.22 on Friday. StreetEasy receives around 1.2 million monthly unique visitors.
“StreetEasy is an excellent strategic fit with Zillow, as we share a common goal: To help consumers become smarter about real estate by communicating comprehensive, unbiased information about apartments and homes,” said Zillow Inc (NASDAQ:Z) CEO Spencer Rascoff. “StreetEasy is an incredibly strong and recognized brand in New York City, and complements Zillow’s dominant and growing national brand. We’re delighted to welcome the enormously talented and knowledgeable StreetEasy team on board.”
StreetEasy is a leading real estate website in New York. Most of the website’s visitors are home shoppers in New York. The website offers for-sale and for-rent listings.
Zillow Inc (NASDAQ:Z) will likely use the net proceeds from the follow-on offering for acquisitions and investments in their technology.
Zillow Inc (NASDAQ:Z) reported a quarterly revenue of $46.9 million earlier this month, which is up 69% over the last year. The company also recorded traffic at 61 million users in July. The website now has over 321 million homes. Around 60% of their traffic was from mobile devices.
[Source: Zillow Release]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry