Prompt Cast
Zillow Group CFO discusses the acquisition of Trulia and their M&A strategy
TLDR Zillow Group CFO Kathleen Philips discusses the successful acquisition of Trulia and their strategy to expand their scale in the real estate market. With only four percent of real estate transactions done online in the US, Zillow sees a massive opportunity for growth.
Timestamped Summary
00:00
Zillow Group CFO Kathleen Phillips discusses Zillow's 2015 acquisition of Trulia and their overall M&A strategy.
05:41
Zillow Group CFO Kathleen Philips discusses the early history of Zillow and Trulia, including their respective IPOs and the first failed acquisition attempt by Zillow in 2011.
12:17
Zillow Group CFO Kathleen Philips discusses the massive opportunity for online players in the real estate market, as currently only four percent of real estate transactions in the US are done online, and the company's focus on staying disciplined and expanding their scale with the Trulia acquisition.
18:37
Zillow Group CFO Kathleen Philips discusses the negotiations and timeline leading up to the announcement of the Zillow-Trulia merger, highlighting the quick turnaround and efficient deal-making process at Zillow.
24:27
Zillow and Trulia quickly agreed on a valuation for the merger based on their operating history, and the decision to keep both brands separate was made in order to maintain brand equity and cater to different consumer preferences.
30:24
Zillow's Premier Agent product is a subscription-based advertising product where agents pay to be promoted next to for sale listings on both Zillow and Trulia, and has been hugely successful in generating revenue for the company.
36:21
Zillow CFO Kathleen Philips recalls the nerve-wracking period of negotiating the merger agreement with Trulia, including the challenges of dealing with regulatory scrutiny from the FTC.
42:22
Zillow CFO Kathleen Philips explains the extensive and detailed process of the FTC's review of the merger, including subpoenaing emails and documents and talking to market participants and real estate agents.
48:09
Zillow and Trulia had to rebuild their supply of real estate listings after being cut off by List Hub, a data provider owned by a competitor, which required them to sign direct data deals with hundreds, if not thousands, of MLS organizations.
54:07
Zillow's strategy for the next couple of years is to continue investing in various products and services, such as Dotloop, to help real estate agents become more efficient and close transactions more quickly, as well as acquiring other brands like naked apartments, hotpads, and Street Easy to build out their portfolio and provide something for everyone.
59:54
Zillow Group has been successful in acquiring companies and finding leaders who can evolve their thinking and abilities as the company grows, which has been a key factor in their high growth industry.
01:05:40
Zillow Group CFO Kathleen Philips believes that the acquisition of Trulia was a fantastic deal and that they are still in the early stages of reaping the benefits of the combination.
01:11:00
App Lovin', a mobile app marketing firm, was acquired by a Chinese private equity firm for $1.4 billion, despite being bootstrapped and profitable from the beginning.
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Technology
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