Last week it was revealed that the Propertyfinder's management buy out attempt had failed and that the REA Group and News International had entered into a heads of agreement with a mystery party. This mystery party has now been confirmed as being Zoopla.
Zoopla is a relatively new entrant to the UK online real estate market having initially launched a site around home prices and more recently moving into advertising homes for sale in the UK using the pay per lead model. Earlier this year Zoopla closed out a £3.75m capital raising. Check out our coverage of Zoopla over the last year.
On reflection, this deal makes sense by providing Zoopla with a boost into being a serious competitor in the market and it gives propertyfinder.com and its team a new lease on life.
The deal clearly makes sense for Zoopla. It allows them to short cut years of work and to join the upper eschelons of the UK property portal market.
The challenge now for the team at Zoopla is to have a clear model for the future, to get the existing Propertyfinder team engaged around the future and to make sure that this is done as quickly as possible with minimal impact on visitors and agents who currently use Propertyfinder.