There was a rumor recently on Bloomberg that Zillow, the real estate information company, was going to purchase it's chief rival company, Trulia. Then the rumor was proven to be true, when the board at Trulia approved a $3.5 billion stock deal. It amounts to a stock transaction for that amount.
However, Zillow doesn't plan to eliminate or absorb Trulia. They intend to continue on with Trulia as it was before. Both sites will contain their current design, and many of Trulia's employees will retain their position. Why isn't Zillow opting to merge the two sites? Apparently, the amount of visitors who go to both sites is small. Each site attracts its own audience, and Zillow doesn't want to risk alienating the Trulia audience. Instead, they want to profit off the customers they were once unable to track.
This can be a very good thing for the consumer because they are offered more. They get a stronger company and are able to receive more benefits from them. It also shows that the company that was able to buy other companies is going to be around for a long time.
Zillow's ultimate goal is to put together a portfolio of distinct real estate properties. Their purchase of Trulia isn't the first move they've taken in this direction. They purchased a New York City-based real estate website in 2013.
For now, Zillow's primary plan is to cut costs and save money. However, it's likely they'll make even more big deals in the future. It'll be interesting to see what's in store for this real estate company. They now have a very unique place in the real estate world.
Many see this as an excellent move for Zillow. Because Trulia was their primary competition, they will now completely dominate the online real estate marketplace. They're primed for unprecedented growth in the years to come, and it will be interesting to see how they continue to built their site further. It also may be a good move for Trulia. The $3.5 billion dollar price is an excellent deal, even when the stock jump they experienced after takeover rumors is taken into account. It's a profitable move, and should make a lot of board members and stock owners happy.
However, Zillow doesn't plan to eliminate or absorb Trulia. They intend to continue on with Trulia as it was before. Both sites will contain their current design, and many of Trulia's employees will retain their position. Why isn't Zillow opting to merge the two sites? Apparently, the amount of visitors who go to both sites is small. Each site attracts its own audience, and Zillow doesn't want to risk alienating the Trulia audience. Instead, they want to profit off the customers they were once unable to track.
This can be a very good thing for the consumer because they are offered more. They get a stronger company and are able to receive more benefits from them. It also shows that the company that was able to buy other companies is going to be around for a long time.
Zillow's ultimate goal is to put together a portfolio of distinct real estate properties. Their purchase of Trulia isn't the first move they've taken in this direction. They purchased a New York City-based real estate website in 2013.
For now, Zillow's primary plan is to cut costs and save money. However, it's likely they'll make even more big deals in the future. It'll be interesting to see what's in store for this real estate company. They now have a very unique place in the real estate world.
Many see this as an excellent move for Zillow. Because Trulia was their primary competition, they will now completely dominate the online real estate marketplace. They're primed for unprecedented growth in the years to come, and it will be interesting to see how they continue to built their site further. It also may be a good move for Trulia. The $3.5 billion dollar price is an excellent deal, even when the stock jump they experienced after takeover rumors is taken into account. It's a profitable move, and should make a lot of board members and stock owners happy.
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