New parent company houses collection of largest home-related brands on mobile and Web
(SEATTLE and SAN FRANCISCO, Feb. 17, 2015 /PRNewswire/) — Zillow, Inc. today announced it has completed its previously announced acquisition of Trulia, Inc. for $2.5 billion in a stock-for-stock transaction, and formed Zillow Group, Inc. (NASDAQ:Z), which houses a portfolio of the largest and most vibrant U.S. real estate and home-related brands on mobile and the Web. In addition to Zillow and Trulia, Zillow Group’s consumer brand portfolio includes StreetEasy, New York City’s leading real estate marketplace, and rental search brand HotPads.
“This is a pivotal day in online real estate and we couldn’t be more excited to welcome Trulia to Zillow Group,” said Spencer Rascoff, CEO of Zillow Group. “Each of our brands share a consumer-first philosophy, and our powerful combination of insights and expertise will drive even greater innovation for consumers, empowering them with essential information they need to make critical financial decisions. Our combination will also enable real estate professionals to more efficiently and easily reach the nation’s largest audience of engaged buyers, sellers and homeowners, and extract even more value from their advertising.”
Paul Levine, previously Trulia’s chief operating officer, has been named president of Trulia, reporting to Rascoff. Pete Flint, co-founder and former CEO of Trulia, has joined the Zillow Group board of directors, as has former Trulia board member Greg Waldorf. Zillow Group is expected to begin trading on Nasdaq on Feb. 18, 2015, under the ticker symbol “Z” and will inherit the trading history of Zillow Inc., which also traded under the ticker symbol “Z”.
Later this year, Zillow Group expects to begin to offer shared services and marketing platforms for advertisers and industry partners that will enhance efficiency and deliver greater return on investment. Information about any changes will be communicated promptly to advertisers and partners.
In connection with the close of the acquisition, the companies eliminated approximately 280 positions, primarily in San Francisco and Bellevue, Wash., due primarily to redundancy in the combined company’s sales and administrative organizations. Another 70 positions will be eliminated as of the end of the second quarter, at which time Zillow Group will have approximately 2,000 employees. The approximately 350 affected employees have already been notified.
Zillow Group intends to provide pro forma financial results for the year ended Dec. 31, 2014 prior to its first quarter earnings report, tentatively planned for May 2015. Information about Zillow Group, including media and investor information, can be found at www.zillowgroup.com. Zillow Group news can also be found at the Twitter handle @ZillowGroup.
Zillow Group acquired Trulia in a stock-for-stock transaction valued at $2.5 billion, based on the closing price of Zillow stock on Feb. 17, 2015. As part of the agreement, Trulia stockholders received 0.444 shares of Class A Common Stock of Zillow Group, Inc. for each share of Trulia Common Stock, and own approximately 33% of the combined company as of closing. Current Zillow holders of Class A Common Stock and Class B Common Stock received one share of comparable Zillow Group Common Stock, representing approximately 67% of the newly combined company. Zillow Group now has approximately 70.5 million fully diluted shares outstanding. Trulia’s convertible notes have been assumed by Zillow Group. The acquisition of Trulia was announced on July 28, 2014, received shareholder and stockholder approval for each company on Dec. 18, 2014, and Zillow was notified by the Federal Trade Commission of its assent of the transaction on Feb. 13, 2015.
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This article was published on February 17, 2015. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.