Zillow Inc (Z) rumored to be in talks to acquire Trulia Inc (TRLA)
Zillow Inc (NASDAQ:Z) is rumored to be in talks to acquire Trulia Inc (NYSE:TRLA). This would create a dominant search website for people that are looking for houses in the U.S. Zillow is the largest real estate website and it would acquire the second largest for $2 billion in cash and stock, according to sources with Bloomberg.
Bloomberg’s sources said that an agreement may be announced as soon as next week. Trulia and Zillow helps buyers and renters find details about homes and generates revenue by selling ads and charging realtors to place listings in a prominent position.
Zillow and Trulia hit over 85 million unique visitors in June, which accounts for around 89% of all traffic to the most visited real estate websites, according to comScore.
Zillow’s shares jumped sevenfold since it went public three years ago. Trulia tripled since it went public in 2012. Zillow and Trulia compete against Move Inc. and Redfin.
Trulia’s revenue is expected to increase 76% this year to around $253 million, which is more than double the previous year. Zillow’s annual revenue is expected to hit around $311 million this year, which is up around 58% over last year. Neither of the two companies are profitable yet.