News Corp (NWSA) is making a land grab: The company has agreed to shell out $950 million for Move Inc. (MOVE), which operates an online marketplace for home listings. The impact is likely to be serious, especially for rivals like Zillow (Z) and Trulia (TRLA). So far in today’s trading, TRLA is off by 2% and Z stock is down by 3%.
First let’s get some background on Move Inc. The company got its start at the dawn of the Internet revolution, back in 1996. It was actually a joint venture with the National Association of Realtors (NAR), which provided access to millions of home listings. The company experienced explosive growth but then hit the wall because of an accounting scandal in 2001.
Life since then has been tough, especially for shareholders. But Move Inc. still has a solid business. The company attracts 35 million monthly visitors and has brands like realtor.com, move.com, moving.com, Top Producer Systems, ListHub, Tigerlead, SocialBios.com, Builders Digital Experience, Featuredwebsite.com, Homefair.com, Newhomesource.com, SeniorHousingNet.com, and HomeInsight. Move has also seen lots of traction with its mobile apps. Read