Boston, MA 07/29/2014 (wallstreetpr) – The speculations of acquisition of Trulia Inc (NYSE:TRLA) by Zillow Inc (NASDAQ:Z) might lead to online realty portals have a very strong position in the online real state listing industry; which is concerning the future of conventional brokers.
Zillow in Negotiations to Acquire Trulia
Zillow Inc (NASDAQ:Z), which at present is the market leader in the industry, is having negotiations to acquire Trulia Inc (NYSE:TRLA), which is said to be the second largest company in realty. It holds $2 billion in terms of cash as well as stock. In case the deal is sealed after negotiations, it will lead to a combined entity that will have unmatched dominance and also the monopoly in the whole industry.
Whooping Traffic on the Sites
The hold of two giants in real estate industry can be judged from the fact that according to COMSCORE, Inc.’s traffic details on the sites for June 2014, it was found that Zillow as well as Trulia topped the chart with approximately 85 million visitors and that too, the unique ones. Zillow had traffic of 53.8 million unique visitors, while Trulia Inc (NYSE:TRLA) had 31.6 million as the unique visitors. At the hitd position, was Move Inc. with unique visitors totalling at 23.8 million.
Revenue of the Largest Online Realty Websites
These two companies allow the buyers as well as renters in finding information regarding properties. However, their largest source of revenue is advertisements and also the amount that they charge from their realtors in placing the listing on portal.
Concerns Regarding Merger
There are a few concerns regarding their merger. The industry experts and analysts opine that in case of merger, the two companies will solely enjoy a whooping share of dominance or power over the listings of real estate. Also, there are concerns that the combined company may also increase fee which is charged from the realtors. It is also opined by the experts that the whooping size of merged company will push it into the brokerage business as well; which both Zillow Inc (NASDAQ:Z) as well as Trulia Inc (NYSE:TRLA) have avoided in the past.