NEW YORK (TheStreet) -- Zillow (Z) announced that it acquired rival online real estate information provider Trulia (TRLA) for $3.5 billion in stock on Monday.
Trulia shareholders will receive 0.444 shares of Zillow for every Trulia stock they own as part of the deal, equivalent to a combined one-third stake in the new company.
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The acquisition is expected to close next year.
Zillow shares are down -2.9% to $154.27 in pre-market trading, while Trulia shares are up 16.7% to $65.78 today.
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: