Zillow, a Seattle-based online real estate company, has announced that it plans to close its $1.8 billion deal to buyout San Francisco-based Trulia by February 17th. The deal was originally announced in July 2014, and was approved by shareholders just one month later. However, Zillow delayed the merger several times after the FTC asked to further investigate the deal. But Zillow has said the FTC has closed its investigation of the merger.
The deal was reported to be worth $3.5 billion when it was announced in July, but is now set to close for approximately $1.7 billion less. Even though the deal is worth less overall, it brings together two long-time rivals to create a giant in the online real estate industry. Zillow has maintained that the deal will benefit the industry as a whole, and that a combined Zillow and Trulia company would only control 4% of the overall real estate market. In a letter to real estate partners, Zillow vice president Curt Beardsley told the partners that the deal would lead to more innovation, improve listing infrastructure, and empower consumers with more information.
At the same time Zillow announced its plans to close the deal with Trulia, the company also announced its fourth quarter earnings. The company posted record revenue of $92 million, which was up 58% from last year and beat analyst expectations by $2 million. For 2014 as a whole, the company reported $325 million in total revenue, up 65% from 2013. The deal with Trulia is likely to only strengthen these numbers.