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Monday, July 28, 2014

Zillow to purchase Trulia as property websites seek to save costs, (NYSE: TRLA), (NASDAQ: Z)

Zillow Inc said it would purchase smaller rival Trulia Inc for $3.5 billion in stock, combining the two most-popular U.S. real estate website operators.Both Zillow and Trulia have been spending aggressively on advertising, foregoing near-term profitability, to capture a bigger share of online spending on real estate listings.The companies said they expected the deal to help save at least $100 million per year by 2016. Between them, the companies spent $382 million in 2013, more than their total revenue.Zillow and Trulia list properties for sale or rent on behalf of homeowners and real estate agents and generate revenue through subscriptions and advertisements.

Trulia, Inc. is a real estate search engine company. Shares of TRLA traded higher by 9.52% or $5.3649/share to $61.71. 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 7300106.

Zillow, Inc. (Zillow), provides real estate and home-related information. Shares of Z fell by 5.23% or $-8.3039/share to $150.56. 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 3756599.



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