Zillow And Trulia Shares Go Bonkers On Report Of A Possible Deal

Spencer Rascoff ZillowCourtesy of ZillowSpencer Rascoff

Real estate site Zillow is looking into acquiring rival Trulia, reports Bloomberg’s Alex Sherman and Jeffrey McCracken.

“Zillow could value Trulia at as much as $US2 billion in a purchase, and an agreement may be announced as soon as next week,” they reported citing anonymous sources.

Trulia, which had a market cap of roughly $US1.5 billion before Bloomberg’s report crossed, surged 30%.

Zillow, which has a market cap of just over $US5 billion, is up 20%. It’s one of the most heavily shorted stocks in the market.

“Talks between the companies are ongoing and may not lead to a deal,” the Bloomberg reporters caveated.

Both companies offer websites that connected home buyers and renters with brokers and landlords.

Zillow truliaGoogle FinanceZillow (Z) and Trulia (TRLA)

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.