Some big news for online real-estate juggernaut Zillow today. The company is announcing another acquisition, New York listings site StreetEasy, for $50 million in cash. And it has applied for a follow-on offering of another 2.5 million shares of Class A common stock, equivalent to around $228 million based on Friday’s closing share price of $91.22.
The StreetEasy acquisition will bring 1.2 million more monthly visitors to Zillow’s platform — along with extensive property listings inventory focusing on New York. “This acquisition gives StreetEasy the resources to further invest in product development and grow its audience, while offering Zillow clear market leadership in the country’s largest and most important real estate market,” the company notes in a statement.
“StreetEasy is an excellent strategic fit with Zillow, as we share a common goal: To help consumers become smarter about real estate by communicating comprehensive, unbiased information about apartments and homes,” said Zillow CEO Spencer Rascoff in the statement. “StreetEasy is an incredibly strong and recognized brand in New York City, and complements Zillow’s dominant and growing national brand. We’re delighted to welcome the enormously talented and knowledgeable StreetEasy team on board.”
Meanwhile, the follow-on offering, Zillow says, will be both for growing the company more, including possibly more acquisitions. “Zillow may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement its business,” the company notes.
Earlier this month Zillow reported revenue of $46.9 million, up 69% over last year as well as record traffic with 61 million users in July, as well as more growth in its mobile business, with more than 321 million homes were viewed via mobile with 60% of Zillow’s traffic comes via mobile devices.
All the same, the company is up against strong competition from Trulia and others and clearly is taking a more aggressive approach to ensure growth.
More to come. Refresh for updates.
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