NEW YORK (TheStreet) -- Zillow (Z) shares are up 6% to $154.50 on Friday following reports that the company is in advanced talks to buy rival Trulia (TRLA) in a deal that could reach $2 billion, according to Bloomberg.
A deal between Zillow, the country's largest online real estate information company, and Trulia, the country's second largest online retail company, could be announced as early as next week, sources told Bloomberg.
Two-thirds of the purchase price for the Trulia could be paid in Zillow stock.
TheStreet Ratings team rates ZILLOW INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZILLOW INC (Z) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: