Zillow and Trulia Announces $3.5 Billion Deal; Peer Stocks In Play

In one of the biggest all stock transactions of the year, Zillow Z announced it would be purchasing Trulia TRLA for $3.5 billion. Shareholders of Trulia will receive 0.444 shares of Zillow per Trulia share, making total ownership 33 percent.

Along with $100 million in anticipated annual cost savings, many are speculating that the combined company will benefit from access to massive amounts previously unavailable data.

The companies will continue to operate their own brands. Trullia CEO Pete Flint will continue to head his business and report to Zillow CEO Spencer Rascoff.

Related: Whitney Tilson: 76% Chance herbalife Will Fail

Peer Plays

This merger throws several peer companies in play. As expected Move MOVE shares are reacting most strongly as its business is closely aligned with that of Trulia. Shares were last up 4 percent.

Yahoo YHOO shares are up 0.5 percent as traders speculate on the sale of the Yahoo Realestate business (part of Yahoo Marketplaces).

RealPage RP and HomeAway AWAY are suprisingly unchanged. Traders should prepare for extra volatility in these names Monday.

Trulia is the big winner on the day, gaining 16.2 percent although Zillow shares have sold off 3 percent.

Posted In: NewsM&AHotTrading IdeasPete FlintSpencer Rascoff
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