Zillow agreed to purchase Trulia for $3.5 billion in an all-stock deal that is designed to make the combined entity the largest in online real estate advertising.
Trulia shareholders will receive 0.444 shares of Zillow for each share of Trulia, the companies said in a statement today. That’s equivalent to Zillow offering $70.53 a share for Trulia, or 25% above Trulia’s closing price of $56.35 on July 25. Zillow shareholders will own two-thirds of the combined company, while Trulia stockholders will own a third.
Trulia Chief Executive Officer Pete Flint will continue leading the site and join Zillow’s board. He will report to Zillow CEO Spencer Rascoff, the companies said. A second Trulia board member, who hasn’t been determined yet, will also join Zillow’s board.
For more Social Media News visit http://www.buzzmouth.com