For some time, both Trulia and Zillow have dominated the world of online real estate websites. Now, that domination is set to extend even further. Trulia was is being sold to Zillow in a $3.5 billion stock-for-stock deal. At the time of writing, both Trulia and Zillow's boards have already approved this deal. If the deal is approved by the shareholders as well, Zillow's biggest competitor will now be their own site.
This is how business tends to work. You might have a lot of different companies selling the same thing. One is stronger than the others and is able to buy them. They are then able to become a stronger company.
This can be a very good thing for the consumer because they are offered more. They get a stronger company and are able to receive more benefits from them. It also shows that the company that was able to buy other companies is going to be around for a long time.
For example roughly one half of the visitors to the Trulia site do not visit the Zillow site at all. Nearly two thirds of the Zillow visitors have nothing to do with Trulia. By combining the two companies, the plan is to maintain the separate marketing presence, offer products that suit those markets, and continue to maximize free content distribution across the different marketing platforms.
For now, Zillow's primary plan is to cut costs and save money. However, it's likely they'll make even more big deals in the future. It'll be interesting to see what's in store for this real estate company. They now have a very unique place in the real estate world.
Data shows that each site has its own audience, and the overlap between the two is quite limited. Zillow believes it's more valuable to maintain these two distinct brands. This will allow customers to continue to use the popular Trulia app, and will allow everyone to have the real estate searching experience they prefer. This move is part of a wider plan for Zillow to become an owner of a variety of real estate companies. Zillow has also acquired a New York City real estate site, and plans to buy additional sites and companies in the future. They desire to build a portfolio of distinct properties.
This is how business tends to work. You might have a lot of different companies selling the same thing. One is stronger than the others and is able to buy them. They are then able to become a stronger company.
This can be a very good thing for the consumer because they are offered more. They get a stronger company and are able to receive more benefits from them. It also shows that the company that was able to buy other companies is going to be around for a long time.
For example roughly one half of the visitors to the Trulia site do not visit the Zillow site at all. Nearly two thirds of the Zillow visitors have nothing to do with Trulia. By combining the two companies, the plan is to maintain the separate marketing presence, offer products that suit those markets, and continue to maximize free content distribution across the different marketing platforms.
For now, Zillow's primary plan is to cut costs and save money. However, it's likely they'll make even more big deals in the future. It'll be interesting to see what's in store for this real estate company. They now have a very unique place in the real estate world.
Data shows that each site has its own audience, and the overlap between the two is quite limited. Zillow believes it's more valuable to maintain these two distinct brands. This will allow customers to continue to use the popular Trulia app, and will allow everyone to have the real estate searching experience they prefer. This move is part of a wider plan for Zillow to become an owner of a variety of real estate companies. Zillow has also acquired a New York City real estate site, and plans to buy additional sites and companies in the future. They desire to build a portfolio of distinct properties.
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