Could Zillow and Trulia take over the real estate industry?


Could Zillow and Trulia take over the real estate industry?

Zillow has just monopolised the US online real estate listing space with its $3.5 billion all-stock buyout of its fiercest rival, Trulia. Though the company will continue to operate both brands in the marketplace, the resulting company will combine Zillow’s 83 million monthly unique users with Trulia’s 54 million, making it the clear leader in the US online real estate space. Since the acquisition, Trulia stock has surged by more than 40% and Zillow stock is up 25%.

So what does this mean for the real estate industry? Fears have arisen that the acquisition will continue to squeeze traditional brokers. Zillow is in a position to wield a lot of power over advertising channels and leverage its scale to raise fees. There is also fear in the industry that Zillow will seek to disintermediate the entire market and remove brokers from the real estate process all together. It’s a wonder that with their notable credentials in running double-sided marketplaces, we haven’t seen ebay make more of an intentioned move into the real estate market. Could this be their next move?

Twitter Digg Delicious Stumbleupon Technorati Facebook Email

Comments are closed.