What a difference a weekend makes... After offering $2 billion for Trulia last week (and seeing its share soar), Zillow has decided that $3.5 billion worth of its bubblicious paper money-stock is the right price for its real estate marketing and income-less competitor Zillow. Of course, on the back of near-record short interest the stock has exploded higher once again this morning and is now up over 60% from before last week's offer. We suspect the word 'synergy' will be used heavily (and not the word 'layoff') but in the interests of helping our fellow man, we present the combined firm's income statement...
They are paying this...
- ZILLOW BUYS TRULIA FOR $3.5B IN STOCK
- TRULIA DEAL REPRESENTS PREMIUM ABOUT 25% T0 JULY 25 CLOSE
For this:
[5]
... and because of this (near record short interest)
[6]
This happened...
[7]
Sorry First Western Capital Management [8], but it is your fault you didn't realize the market was permanently broken some time in 2009...
Remember what we have said since 2012 [9]: the only strategy that actually works with unprecedented consistency in this broken, centrally-planned market is to go long the most shorted names. Today: another case in point.
Meanwhile, while shorts are the biggest losers, here are the biggest winners. Congratulations Stevie Cohen's Point72 who added to his position, as well as Tiger Global and momo expert JAT whose 4.6% and 2.2% stakes in TRLA, respectively, are both new positions as of the latest quarter.
[10]
