Zillow & Trulia Announce $3.5 Billion Deal; Peer Stocks In Play
In one of the biggest all-stock transactions of the year, Zillow (NASDAQ: Z) announced it would be purchasing Trulia (NYSE: 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 Link: Whitney Tilson: 76% Chance Herbalife Will Fail
This merger throws several peer companies in play. Move (NASDAQ: MOVE) shares are reacting most strongly as its business is closely aligned with that of Trulia. Shares were last up four percent.
Yahoo (NASDAQ: YHOO) shares were up 0.58 percent as traders speculate on the sale of the Yahoo Real Estate business (part of Yahoo Marketplaces).
Trulia is the big winner on the day, gaining 14.6 percent, although Zillow shares have sold off 1.8 percent.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.