Zillow set to acquire Trulia for $3.5B in stock

The companies will maintain their separate brands, with Trulia CEO Pete Flint staying on board and reporting to Zillow CEO Spencer Rascoff. Although the deal has been approved by both companies’ boards of directors, it’s not expected to close until sometime next year. When the deal closes, Flint and another Trulia director will join the combined company’s board of directors.
Talks to bring real estate’s two most popular sites together started six weeks ago, Rascoff told Inman News.
Rascoff says the plan is for Zillow to offer a portfolio of brands in the real estate space, as it does with HotPads and StreetEasy in New York.

The new portal giant will be good for both consumers and the real estate industry, Rascoff said.
“The combined company can innovate even faster to help the consumer,” he said.
Also, with the immense reach, resources and talent that the portal giant can bring to the table, agents will get access to tools that will help them “take advantage of the technology revolution,” Rascoff said.
Flint shared the same idea on a call he and Rascoff held this morning for investors and investment analysts, and said the merger will also create savings in marketing. Zillow and Trulia are set to spend a combined $110 million this year on their national marketing campaigns — $65 million for Zillow, $45 million for Trulia.
Zillow already powers real estate search at Yahoo Homes, AOL Real Estate and MSN Real Estate.
“It ought to be quite clear to a listing agent or a broker that it behooves their seller to have their listing displayed on Zillow and Trulia or sites that Zillow powers,” Rascoff said on the call — a message he’s been hammering for months on social media and elsewhere.