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 at a time when more prospective homebuyers are screening properties online.The deal, which antitrust experts say is unlikely to face 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 they expected the deal to help save at least $100 million every year by 2016. Between them, the companies spent $382 million in 2013, more than their revenue. Their combined annual loss was $30 million.Trulia's shares jumped 20 percent to a high of $67.49, still well short of the offer, which values the company at $70.53 per share. Zillow's shares rose as much as 4 percent to $164.90.
Trulia, Inc. is a real estate search engine company. Shares of TRLA traded higher by 17.69% or $9.97/share to $66.32. 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 14055396.
Zillow, Inc. (Zillow), provides real estate and home-related information. Shares of Z traded higher by 1.89% or $2.995/share to $161.86. 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 7690584.
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