Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Zillow Agrees to Buy Competitor HotPads

By John Divine - Nov 26, 2012 at 6:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Acquisition of San Francisco-based HotPads for $16 million strengthens Zillow's online rental presence.

Zillow ( ZG 2.62% ) today announced that it will purchase rival HotPads for $16 million in cash. Zillow, a real estate information website, said in a press release that the deal represented the first "consumer-facing" acquisition in company history. HotPads is a leading online rental information site, and Zillow believes it will be a valuable asset as it expands its operations to include more rental offerings.

Zillow's CEO emphasized the expertise of HotPads' engineers, calling them "amazing" and praising their "deep understanding" of the online rental search process. HotPads has 19 employees and was founded in San Francisco in 2005. The $925 million Zillow, founded in 2004, has made five other acquisitions in less than two years to boost its unique position in the online real estate information market. The company IPO'd last year, and despite surging nearly 80% on its first day of trading, shares have come back down to earth and now trade closer to their original $20 price tag.

Zillow shares were up modestly today, gaining 0.5% to close at $26.23.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
$61.85 (2.62%) $1.58

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.