Zillow to Acquire HotPads To Accelerate Growth of Rental Marketplace

     Zillow to Acquire HotPads To Accelerate Growth of Rental Marketplace

PR Newswire

SEATTLE and SAN FRANCISCO, Nov. 26, 2012

SEATTLE and SAN FRANCISCO, Nov. 26, 2012 /PRNewswire/ --Zillow, Inc. (NASDAQ:
Z), the leading real estate information marketplace, today announced it has
entered into a definitive agreement to buy San Francisco-based HotPads, a
map-based rental and real estate search site for $16 million in cash. This is
Zillow's first acquisition of a primarily consumer-facing company. The
transaction is subject to satisfaction of customary closing conditions and is
expected to close in the fourth quarter of 2012.

HotPads™ is an established and significant player in rentals for both
consumers and professionals, offering a robust website and five mobile apps
across iPhone®, iPad® and Android™. Nearly 2.8 million unique users visited
HotPads in October^i, primarily to shop for rentals. Nearly 70 percent^ii of
all listings viewed during the month were homes or apartments for rent. The
addition of HotPads will allow Zillow® to expand the size of its growing
rental audience and extend the reach of its marketing tools and productivity
solutions for rental professionals.

"This acquisition represents a significant step-change for Zillow Rentals,
allowing us to dramatically increase the number of leads we send to landlords.
HotPads has a younger, complementary and rental-focused audience. Now Zillow
will become even more relevant to consumers at the beginning of their real
estate life cycle," said Spencer Rascoff, CEO of Zillow. "In addition, by
acquiring an amazing engineering team, with a deep understanding of how people
search for rentals and become tenants, we expect to accelerate our innovation
and monetization of our rental marketplace."

Zillow is in the midst of growing its rental offering for consumers and
professionals. In October 2012, the company launched a free marketplace and
suite of tools for rental professionals, which includes listing distribution
across the Zillow Rental Network, the largest rental network on the Web^iii
that also includes Yahoo!® Homes. Upon closing, Zillow expects HotPads to join
the Zillow Rental Network.

"At HotPads, we're passionate about empowering people with tools and
information to help them find the right place to live, and we have always
admired Zillow's similar vision," said Matt Corgan, co-founder and CEO of
HotPads. "Combining Zillow's toolkit for owners and managers with an
unmatched community of new tenants—across Zillow, Yahoo! and HotPads— we
believe will enable the first true marketplace at scale for rentals."

Founded in 2005, HotPads has 19 employees, and will continue to operate from
San Francisco.

HotPads will be the sixth acquisition by Zillow in less than two years. The
company recently announced its intent to acquire Mortech, Inc., a mortgage
technology company that provides essential software tools to the mortgage
industry. In October, Zillow acquired Buyfolio™, an online and mobile
collaborative shopping platform where home shoppers can search, track,
organize and discuss for-sale listings with their real estate agent and others
in their personal network. In June 2012, Zillow acquired RentJuice®, the
foundation of Zillow Rentals. In 2011, the company acquired Diverse
Solutions®, which helps real estate agents market their businesses and improve
their personal websites, and Postlets®, a leading online real estate listing
creation and distribution platform. Each of these companies also provide
valuable services that support Zillow's strategic expansion beyond a
traditional media model to offer a suite of marketing and business services to
local professionals.

About Zillow, Inc.
Zillow (NASDAQ: Z) is the leading real estate information marketplace,
providing vital information about homes, real estate listings and mortgages
through its website and mobile applications, enabling homeowners, buyers,
sellers and renters to connect with real estate and mortgage professionals
best suited to meet their needs. Nearly 36 million unique users visited
Zillow's websites and mobile applications in October 2012. Zillow, Inc.
operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Mobile, Postlets,
Diverse Solutions, Zillow Rentals, Buyfolioand Mortech. The company is
headquartered in Seattle.

Zillow.com, Zillow, Postlets, Diverse Solutions and RentJuice are registered
trademarks of Zillow, Inc.
Buyfolio is a trademark of Zillow, Inc.
Mortech is a trademark of Mortech, Inc.
HotPads is a trademark of HotPads, Inc.
iPhone and iPad are registered trademarks of Apple, Inc. Android is a
trademark of Google, Inc.

Yahoo! is a registered trademark of Yahoo! Inc. 

^i Source: Google Analytics, October 2012
^ii Source: Google Analytics, October 2012
^iii Source: comScore Media Metrix Real Estate Category Ranking by Unique
Visitors, June 2012, US Data.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that involve risks and uncertainties, including, without
limitation, the statements regarding the expected benefits of our acquisition
of HotPads and the expected transaction costs related to our acquisitions of
HotPads, Buyfolio and Mortech. Statements containing words such as "may,"
"believe," "anticipate," "expect," "intend," "plan," "project," "will,"
"projections," "business outlook," "estimate," or similar expressions
constitute forward-looking statements. Differences in Zillow's actual results
from those anticipated in these forward-looking statements may result from
actions taken by Zillow as well as from risks and uncertainties beyond
Zillow's control. Factors that may contribute to such differences include, but
are not limited to, Zillow's ability to successfully close, integrate and
realize the benefits of its strategic acquisitions, including the planned
acquisition of HotPads. The foregoing list of risks and uncertainties is
illustrative, but is not exhaustive. For more information about potential
factors that could affect Zillow's business and financial results, please
review the "Risk Factors" described in Zillow's Quarterly Report on Form 10-Q
for the three months ended June 30, 2012 and Zillow's Annual Report on Form
10-K for the year ended December 31, 2011 filed with the Securities and
Exchange Commission, or SEC, and in Zillow's other filings with the SEC.
Except as may be required by law, Zillow does not intend, and undertakes no
duty, to update this information to reflect future events or circumstances.

(ZFIN)

SOURCE Zillow, Inc.

Website: http://www.zillow.com/
Contact: Jill Simmons, Zillow, +1-206-757-2794, press@zillow.com
 
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