Tag Archives: calendar

Zillow closes $2.5 billion acquisition of Trulia, plans to cut 350 staffers (John Cook/GeekWire)

Zillow and Trulia are now one. The online real estate giants today officially combined operations, with Zillow closing the acquisition of its longtime rival for $2.5 billion in stock , creating a juggernaut in the industry with 2,000 employees and roughly 130 million monthly visitors. That’s down from the $3.5 billion price tag when the deal was first announced last July. Zillow Group CEO Spencer Rascoff As a result of the acquisition, Zillow will now operate under the name Zillow Group, comprised of four real estate brands: Zillow, Trulia, StreetEasy and HotPads. In an interview with GeekWire, Zillow CEO Spencer Rascoff called it a “big day.” “I am excited about how we are positioned relative to the size of the opportunity,” said Rascoff. “There is $13 billion spent in real estate advertising and I think Zillow Group is poised to benefit as that real estate advertising budget moves online.” In addition, Zillow confirmed that layoffs will occur as part of the transaction, with 350 staffers expected to lose their jobs. The company eliminated 280 people at the combined company — mainly in San Francisco and Bellevue — today. Another 70 staffers will be let go by the end of the second quarter. “That is always the hardest part of any transaction like this because it involves real people,” said Rascoff. “And people are always our highest priority, and it has weighed on me and has been a focus of ours.” GeekWire reported on the layoffs earlier today , though the exact number was not previously known. Zillow Group — which will continue to trade on the Nasdaq under the ticker symbol “Z” — will employ 2,000 people after the layoffs are completed. It’s been a tough road for Zillow to close the acquisition of Trulia, one which Rascoff said took longer than he anticipated

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FTC clears Zillow’s $1.8 billion acquisition of Trulia, deal could close next week (Taylor Soper/GeekWire)

Seattle-based online real estate company Zillow announced Friday afternoon that it plans to close its $1.8 billion acquisition of San Francisco-based Trulia as early as next Tuesday. Zillow CEO Spencer Rascoff. Zillow noted today that the Federal Trade Commission has completed its investigation after the agency submitted a second request in November to  review any potential anti-trust violations . The deal was originally announced  this past July and shareholders approved the deal one month later . But Zillow delayed the merger multiple times after the FTC asked to further investigate the deal. The deal was reported to be worth $3.5 billion in July. But based on the current share values of each company, the deal is now worth about $1.8 billion. The acquisition will bring together two long-time rivals and create a powerhouse in the online real estate industry. Zillow has  argued  that the blockbuster deal will benefit the industry, and in a letter to real estate partners, Zillow vice president Curt Beardsley wrote  that the deal would lead to more innovation, improve listing infrastructure and empower consumers with more information. “We believe this is a tremendous opportunity to combine resources for innovation,” he wrote. Trulia CEO Pete Flint In response to anti-trust concerns about the merger, CEO Spencer Rascoff told CNN in July that a combined Zillow and Trulia company would control just 4 percent of the overall real estate marketing spend in the U.S. “Most advertising still occurs offline; it hasn’t migrated to the Internet yet,” he said. Pete Flint will remain as CEO of Trulia, which will continue to operate as a standalone brand in the Zillow family. He will join the board, along with another representative from Trulia

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