Two Wrongs Make A Right? Zillow, Trulia Soar On Incomeless Acquisition Plan

Tyler Durden's picture

Somehow this makes perfect sense: Zillow's stock is up over 22% on news that it will acquire rival real estate company Trulia for $2 billion. Trulia is up 32%, which is about half in absolute terms of the $1 billion Zillow's market cap has grown by in the past few moments to $6 billion. Imagine if it had paid even more for Trulia? And the piece de resistance: Neither company is currently profitable on an annual basis - the combined net income of the two companies is... zero. Two wrongs do not make a right, or rather didn't. And then the new normal came around... 

Wait, we know: Synergies (or at least infinite NOLs).



Upon announcing a $2bn acquisition of a money-losing competitor, Zillow "investors" added $1 Billion in market cap to the company... yeah yeah synergies


*  *  *

Nope, no bubble here at all...

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Argos's picture

I REALLY need to start a company NOW.  I don't have a business plan, but it looks like that's not needed anymore.

RevRex's picture

Both of those sites suck if you are looking for real estate.

wallstreetaposteriori's picture

Wash, rinse, and repeat with absurb market valuations..

0b1knob's picture

Three left turns do however equal one right turn.   Very useful trick sometimes....

max2205's picture

2 co s that have no PE one 5 B market cap the other 2 B.

5 B buys the other for 2 b. Both go up 30%

Wtf. Makes perfect cents

Pool Shark's picture



Probably trading on inside information; like they're about to go global with a campaign based on Sock Puppets...


SumTing Wong's picture

Who else wants to short the hell out of all this shit? 

Who else is afraid that the Fed will keep printing the hell out of money so that this makes sense? (And I've got a whole brick of Zim$100T notes to help pay for the acquisition.)

Stackers's picture

Next up: Pandora to buy Sirius-XM

PT's picture

But you only profit when you sell, right?  Or did they sell some puts?  Any other methods?

RaceToTheBottom's picture


Bring your own Muppets

Freddie's picture

Zillow's data is crap.  I sent them an email about a huge data error.  They said they would fix it a week ago.  Total retards.  I am not a realtor.

thamnosma's picture

Are there any good on-line real estate websites?   Doesn't seem so.  "Boots on the ground" sort of thing.

tenpanhandle's picture

I was thinking the same.  All you need is a stupid sounding name and you're halfway there.

AlaricBalth's picture

Are Trulia and Zillow based in Belize City?? Their shares sure trade like it. 

Freddie's picture

Zillow is a high frequency darling.

Pool Shark's picture



Two guys decide to go into business selling watermelons. They buy a pickup truck and purchase watermelons for $2 each from a farmer, then drive into town where they sell them for $2 each.

After several roundtrips to purchase and sell watermelons, one of the guys says to the other: "Hey, we're not making any money."

The other guy says: "Yeah, I think we need a bigger truck."

 [P.S.: this was a joke I first heard 40 years ago. Who would have guessed it would actually become reality...]


eatthebanksters's picture

Awesome!  I'll be looking for a cheap, hardly used truck, soon!

Dr. Richard Head's picture

I am part owner of a company that has over 1,500 active clients (no one client holds more than 4% of our business) that has been in business for over 20 years.  We have a profit margin over 25% and have been growing in the double digits for the past 7 years.  I guess we would be a penny stock, if we were to IPO, based on this backwards nonsense called a stock market. 

AlaricBalth's picture

Doc. Name it AmazonFaceTweeter, Inc. and you are assured to achieve a market cap of at least $25,000,000,000.00.


Nick Jihad's picture

No, just wait till some hot internet startup goes IPO, and launch your IPO at the same time, with a very similar ticker symbol.

tarsubil's picture

Wolf Cola is a strong buy. They haven't started production yet but word is it is better than Coke.

666's picture

"I REALLY need to start a company NOW."

I've got you beat: I'm in the process of creating one right now! I'm going to call it CYNK.

Oh, wait...

Mike Ochisbent's picture

Wow. It looks like dinosaurs mating -- again.

midtowng's picture

I'll join you!

I have no ideas at all, but it appears that two people not having a plan is worth more than one person not having a plan.

We'll get rich!

AcidRastaHead's picture
Trulia and Zillow insiders sold shares before merger report

taraxias's picture

Fuck man, someone wake me up from this nighmare.

tenpanhandle's picture

Sorry to say "you are awake". 

tarsubil's picture

Nightmare? Why, you're soaking in it.

orangegeek's picture


firstdivision's picture

Buy bitches, just buy!

ejmoosa's picture

Makes me wonder if both of these are just not federal government fronts to publish propaganda that shows the housing markets are improving....

curbyourrisk's picture

Ding Ding Ding....


we have a winner.

One eyed man's picture

Zillow's price estimates make no sense. On my street it shows a 35% price difference between two houses of the same type and construction, lot size, etc. same side of the street, just two houses apart.

Dr. Richard Head's picture

My gramama always said it's not what you know, but who you know that matters. 

AlphaBetaCFA's picture

Zillow simply pulls assessed values of homes from the county assessors and calculates the implied market value (x3 in my county). If you are aggressive and successful in challenging your annual assessment the Zillow market value estimate for you home is less than the yahoo next door who simply sends in his tax check.

DerAdler's picture

Who's auditing these companies? This has money laundering all over it. What do people think the banksters are doing with trillion$ of newly-minted cash?


But wait, there's more. Real Networks just announced that they were gonna buy out both Trullia and Zillow, and fold them into the parent company with killer apps about to be developed. 

The new entity will now be known as.............................. INFOSPACE !!!!!!

The more things change, the more they remain the same.

Lap it up, sheeple, lap it up.  

TN Jed's picture

My wife has been saving so much at all these sales that I need a second job!

astoriajoe's picture

they'll make it up in volume I'm sure.

nosoeawe's picture

according to common core curriculum this makes perfect sense! 2+2 = whatever the big eared jihadist in chief says it is

ShrNfr's picture

And war is peace and less is more. It is only fair.

ShrNfr's picture

One word, "Eyeballs".

Big Ben's picture

"Synergies" is a euphemism for firing all the employees of the newly acquired company.

Where did Zillow get the $2 billion, considering that it currently has no earnings? Or is this a stock deal? No worries about earnings dilution if there are none.

Nick Jihad's picture

Well, yeah. This is what you call free-market discipline - supply being brought into balance with demand, and resources that were being wasted, being redeployed to more productive uses.  Quitchyerbitchin.

mastersnark's picture

Do you think they could turn around their companies by lowering their product's price down from "free?"

mastersnark's picture

A website chock full of information they not only paid for, but then they paid to have it manipulated into pretty maps and icons.