Zillow to buy NYC listings firm

NEW YORK — Zillow, operator of the largest US real-estate website, has agreed to acquire StreetEasy for $50 million in cash to expand its coverage of the New York market.

StreetEasy has about 1.2 million monthly unique users, primarily residential real estate shoppers, the companies said. Zillow, which reported 61 million unique visitors at the end of July, separately announced a secondary stock offering.

Zillow faces increased competition from Trulia Inc. and other real estate listings providers. The company, which bought San Francisco-based HotPads in December for $16 million, said it may use proceeds from the share offering to make deals that complement its business.


The StreetEasy purchase ‘‘opens the door to potentially lead the New York City market,’’ said James Cakmak, an analyst at Telsey Advisory Group. ‘‘But they’re paying $50 million dollars for about 1 million users, and that’s a little expensive.’’

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The acquisition will allow Zillow to expand into the rentals market and the company will probably use the stock offering to help pay for it, Cakmak said.

Zillow plans a 2.5 million offering of class A common stock and said that an additional 2.52 million of shares will be sold by existing shareholders.

Bloomberg News