Shares of Zillow jumped more than five percent in early-morning trading on the news, topping $96 per share. Zillow, whose stock is up 72 percent in the past year, now has a market value of more than $3.8 billion.
Zillow and Redfin operate in different spheres of the online real estate business, though the two companies (located just a few blocks away from one another in downtown Seattle) often find themselves at loggerheads. (See: Redfin to Zillow: Make these 6 changes to how you show our properties online).
Redfin CEO Glenn Kelman also has spoken publicly about how money-hungry media sites, like Zillow, could “enslave” brokerage businesses.
I wonder how they now feel about sharing a common investor?