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Zillow acquires Trulia for US $3.5 bn , focus will be on mobile growth

Zillow has acquired Trulia for US $3.5 billion in stock. The deal, which is expected to close in 2015, could trigger similar consolidations within the online real estate industry.

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What: Two of the U.S biggest online real estate companies are joining forces. Zillow acquired Trulia for US $3.5 billion in stock through a deal likely to close in 2015.
Why it matters: Despite the acquisition, both companies will continue operating independently with its’ own sites and apps, giving advertisers the opportunity to reach their separate audiences, which do not overlap much, across both platforms.

descarga (1)3dc67ba26bde79b497356b9a2921f5a9_400x400U.S biggest third-party sites in online real estate are joining forces.

Zillow has acquired Trulia for US $3.5 billion in stock. The deal, which is expected to close in 2015, could trigger similar consolidations within the online real estate industry.

Following the acquisition, both companies will maintain separate consumer-facing sites and apps, and will continue operating under individual names. This merger , however, creates a giant in the increasing business of online real estate listings.Trulia CEO Pete Flint will retain his position and report to Zillow CEO Spencer Rascoff.

As partners, Zillow and Trulia are planning to help established real estate players like Re/Max, Coldwell Banker and Century 21 advertise listings, focusing mostly on mobile as more home buyers begin their searches on smartphones and tablets. While Trulia claimed 54 million unique mobile users in Zillow said it had 83 million unique mobile users. But, in general, real estate marketers have not shifted complete to mobile.

Together, Trulia and Zillow have a combined revenue of less than 4 percent—or roughly US $480 million—of the real estate industry’s total US $12 billion annual spend. They generate most of their revenue from selling ads to real estate agents.

As the two online real estate players have different audiences, advertisers may profit from this opportunity by hitting different consumers with similar messages. While the sites will remain separate, advertisers could reach consumers across both platforms. Analysts expect the newly combined company to save money on marketing costs while advertisers increase their digital spend.

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