(Updates share prices, changes sourcing)
By Soyoung Kim and Liana B. Baker
NEW YORK, July 24 U.S. real estate website
operator Zillow Inc is in advanced talks to buy smaller
rival Trulia Inc, according to people familiar with the
The companies, with the two property sites most visited by
American consumers, are working on a deal that could be
finalized in a matter of weeks, the people said on Thursday,
asking not to be named because the discussions are private.
Trulia shares jumped as much as 40.5 percent to $57 on
Thursday, valuing the company at $2.10 billion, after Bloomberg
News reported Zillow may reach a deal to buy the company as soon
as next week. The stock ended up 32 percent at $53.74 on the New
York Stock Exchange. (bloom.bg/1qCMgeD)
Zillow shares closed up 15.3 percent at $145.76, giving it a
market capitalization of roughly $5.8 billion. The proposed
acquisition would allow the company to corner a larger share of
online spending on real estate listings and advertising.
Zillow and Trulia declined to comment on Thursday.
A deal would improve Zillow's pricing power and give it
access to Trulia's software to compete against Move Inc
, said Telsey Advisory Group analyst James Cakmak, who
covers both Zillow and Trulia.
The companies, which list properties for sale or rent on
behalf of homeowners and agents, get revenue through
subscriptions from real estate agents and by selling
"There are three players in the market going after the same
dollars and I don't think you need three players," Cakmak said.
Zillow recently bought Retsly Software Inc and also
partnered with RealPage Inc to allow Zillow customers to
market their properties on RealPage's rental site.
(Reporting by Soyoung Kim and Liana Baker in New York, Soham
Chatterjee in Bangalore; Editing by Savio D'Souza, Joyjeet Das
and Tom Brown)