The Federal Trade Commission has granted a merger between the two largest websites in the real estate industry, Zillow and Trulia. Zillow could close on its largest rival, a deal worth about $1.8 billion (at Trulias current stock price) as early as next week.
Every year $12 billion is spent on real estate advertising. This strategic merger between rivals will bring in a more significant amount of money spent on advertising along with cutting cost for Zillow. Zillow has plans to develop more mobile technology and become more involved in listing rentals. This leaves Zillow with its largest competitor left as Move Inc.
Some in the real estate industry, especially the National Association of Realtors, had voiced concern that the merger might concentrate too much power in one company. Zillow delayed the closing while the FTC reviewed the deal, but said Friday that the agency had given its blessing.
There is a growing concern with the National Association of Realtors regarding the Zillow Trulia merger. NAR has created such a heavily guarded MLS system, that allowing Zillow to gain this much control by one company is unsettling licensed agents.
Meanwhile, this merger is going to be a huge benefit to investors that are not licensed agents. Investors are going to have access to important information, that was once in the hands of only licensed agents.
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