NEW YORK (AP) — Real estate website operator Zillow is buying rival Trulia in a $3.5 billion deal that would make the biggest player in the online real estate market.
Zillow would also become the king of real estate listings available on smartphones.
"It's a very sound business move by Zillow, they wiped out their closest competitor," said Benchmark analyst Daniel Kurnos. According to Benchmark estimates Zillow and Trulia are No. 1 and 2 in the online real estate market, followed by No. 3 Move Inc.
Investors weren't so sure. Trulia's stock rose 8 percent in morning trading, but Zillow's fell 5.9 percent.
Zillow is known for its "Zestimate" housing price estimate, and both Zillow and Trulia offer similar information like neighborhood school and crime reports and payment calculators.
Trulia shareholders will receive 0.444 shares of Zillow common stock for each share they hold, and will own approximately 33 percent of the combined company. Zillow Inc. shareholders will receive one comparable share of the combined company and own the other two-thirds of the business.
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