Zillow – Zillow Acquires HotPads For $16 Million To Expand Rental Listings
The deal is the online real estate company’s first acquisition of a consumer-facing and its sixth acquisition overall in the past two years.
Founded in 2005, HotPads, with 19 employees, is expected to complement Zillow’s existing rental offerings, Zillow CEO Spencer Rascoff said in a statement. Zillow recently launched Zillow Rentals, based on its acquisition of RentJuice, for property managers, agents and landlords to manage listings.
San Francisco-based HotPads, which had 2.8 million visitors in October, focuses on rental properties with a younger audience. The company had raised $2.3 million in financing from Meakem Becker Venture Capital, according to CrunchBase.
Seattle-based Zillow recently posted quarterly revenues that beat analysts’ expectations but missed expectations for fourth quarter guidance, sending its stock price sharply lower. Zillow stock Monday was down $0.06 or 0.23% to $26.17 in late trading on the Nasdaq.