Zillow Bets Big on Big Apple

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Aug. 19 (Bloomberg) – Bloomberg’s Cory Johnson reports on real estate website Zillow’s $50 million purchase of New York site Streeteasy, He speaks with Emily Chang on Bloomberg Television’s "Bloomberg West." (Source: Bloomberg)

Welcome to the early edition of "bloomberg west." i'm emily chang.

Our work focus is on innovation, technology, and the future of business.

Zillow 1 say bigger foothold in the new york city real-estate market and is willing to pay for it.

They have agreed to buy streeteasy for $50 million.

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Zillow is betting big on the big apple, paying $50 million in cash to acquire streeteasy.

Streeteasy has 1.2 million users and will allow zillow to expand its footprint in the new york area.

Shares are trading down today.

The company is also announcing a secondary stock offering.

Cory johnson has more.

What is -- what does an acquisition like this mean?

Mozilo -- -- zillow, they are trying to gain real estate in new york, now try to find a place in the apartment business in new york.

Since the ipo, they have been doing fantastically.

The stock has gone straight off to the races.

Today's move is they are trying to not so important when you look at the rise in the ipo, over to her 50%, but streeteasy is focused on the apartment and rental business, not part of zillow's tradition all get in the car and drive around and shot.

They have tried other things in the apartment arena.

There could be many things.

One of the things they have had great success with is mobile, monetizing on that.

Whether or not that works in new york, we will see.

This is the kind of thing that is dependent on the listings.

What does this term -- what does this mean in terms of the wider business strategy, and with the competition?

Zillow has acquired a lot of different companies.

Over time, reversed solutions, postlets, guru group.

They did a couple of others as well before today's announcement.

Streeteasy is their largest ever, so they are using the cash that they got from the ipo, they are using their stock to make their business bigger and grow their revenue base to secure a foothold in those markets.

How does this compare to what trulia and red fin are doing?

How does this differentiate zillow?

I think this is a land grab for them.

They have had an amazing growth, a triple digit revenue growth, but that has slowed down a bit for the company.

69% year over year growth basis.

User growth had really slowed down and these acquisitions helped to fuel that growth.

With the rich acceleration of user growth, that will be important for these guys to return a profit in the future.

Now to the growing influence of technology in hollywood.

Twitter has made a big higher, bringing on board the former head of the global media and entertainment sales, jennifer prince.

It is part of an effort to get hollywood a bigger presence on twitter.

With us today is our hollywood insider.

What does this new hire mean?

There are similarities to the early marketing story tied to facebook.

Advertisers were thinking about facebook and i knew they had to be part of that story.

Having a facebook presence.

When it came to committing advertising dollars, it was a longer road.

In the case of twitter, especially here in hollywood, we know that the tv and movie studios see a massive amount of value being associated through twitter.

This text has been automatically generated. It may not be 100% accurate.


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