Zillow Inc (Z) Buys Out Trulia Inc (TRLA) In $3.5B All Stock Deal

As part of the breaking news about the $3.5 billion worth real estate deal, in which $5.79 billion market capped Zillow Inc (NASDAQ:Z) bought out $2.26 billion market cap Trulia Inc (NYSE:TRLA) CNBC today asked CRT Capital Group’s Neil Doshi on his opinion on the dynamics of the transaction.

Zillow Inc (NASDAQ:Z)

Mr. Doshi commented, “We are positive on this deal. We think that at the end of the day, this provides scale. And scale, ultimately, leads to more advertising on the overall network, so we think it is positive for both Trulia Inc (NYSE:TRLA) and also for Zillow Inc (NASDAQ:Z) as well.”

Looking ahead, the analyst predicted that regulators will have a close look at the deal, but eventually he expects the deal to come through. He rationalized that, “this is a very large market and a very fragmented market. It’s probably a $10 billion market in terms of total marketing that happens by real estate agents [...] If we look at the revenue of the both combined Zillow and Trulia, it’s less than about 12 percent [of that total].”

Mr. Doshi conceded that the deal might face opposition from competitor Realogy Holdings Corp (NYSE:RLGY). He indicated that, “Probably will voice their opinion with the regulators and probably claim that there is too much power” between the merged entity and would bode ill on pricing for agents, because “online viewing will happen only on one site” going forward.

Explaining the current scenario, he indicated that Zillow Inc (NASDAQ:Z) charges roughly $300 per month, whereas Trulia Inc (NYSE:TRLA) prices its offering  in the $100 to $150 range and expects the combined entity to maintain status quo and allow agents to decide on which network, they would like to advertise.

Disclosure: none

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!