Zillow Inc said it would purchase smaller rival Trulia Inc for $3.5 billion, combining the top two U.S. real estate websites to cut costs, after they failed to produce profits from a rising number of home buyers shopping online.The deal, which antitrust experts say is unlikely to face regulatory hurdles as there are very few barriers to enter the market, will enable the companies to cut heavy marketing costs that have seen both run up heavy losses.The companies, rivals for nine years, said the all-stock deal would help save at least $100 million a year by 2016.Between them, the companies spent $382 million in 2013, more than their revenue. Their combined loss was $30 million.
Trulia, Inc. is a real estate search engine company. Shares of TRLA traded higher by 15.42% or $8.69/share to $65.04. In the past year, the shares have traded as low as $26.35 and as high as $57.47. On average, 1774050 shares of TRLA exchange hands on a given day and today's volume is recorded at 15674749.
Zillow, Inc. (Zillow), provides real estate and home-related information. Shares of Z traded higher by 0.92% or $1.46/share to $160.32. In the past year, the shares have traded as low as $70.28 and as high as $159.26. On average, 1908700 shares of Z exchange hands on a given day and today's volume is recorded at 8775949.
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