Zillow Inc. acquisition of Trulia Inc. (TRLA) for 3.5 billion dollars in an all-stock agreement is intended to make both entities the biggest in online real estate marketing.

For every share of Trulia, shareholders will get 0.444 Zillow shares, both companies asserted. This is equal to Zillow contribution of 70.53 dollars per share for Trulia. Zillow shareholders are going to own 2/3 of both companies, while Trulia stockholders will own only 1/3.

The deal will make Zillow and Trulia a unified company to capture a larger percentage of digital real estate advertisements since increasingly more individuals are shifting property search to online world and real estate agencies are investing more cash in advertising on the web. Although there are other real estate sites like Redfin Corp and Move Inc. that are still developing, Zillow and Trulia are the leading most visited property websites in America.

An acquisition of this nature could give a heavy blow on Trulia and can keep them out for good, while at the same time cutting down the number of alternatives that property agents have to advertise their properties. That could lead to considerably increased advertisement rates, which leads to more income for Zillow. It is an investment risk worth taking for Zillow. Both companies will be able to benefit from some sort of brand awareness and the network effect with this development.

Zillow and Trulia help property seekers locate information on houses; both companies generate revenue by selling advertising and asking property agents to place their listing clearly. The companies estimated total expenditure on real estate advertising in America alone is $12 billion a year, of which Zillow and Trulia collectively maintain minimum 4 % of the market share. Yet, regulators will have to approve the transaction before it can be sealed due to the fact the companies are the 2 leading real estate websites.

About Trulia, Inc.

Trulia (TRLA) offers property dealers, buyers, renters and real-estate experts all the basic tools and useful information they need to achieve success in the property search process. As a result of its advanced web and mobile products, Trulia supplies active property buyers and retailers vital details about the property, the community and the procedure while linking them with the right agents or dealers. For agents, Trulia, along with its Market Leader subsidiary, offers end-to-end solutions that allow them to locate and serve customers, build sustainable relationships and build their business. Launched in 2005, Trulia has its headquarter in San Francisco with branches in New York City, Seattle and Denver.