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Seattle-Based Redfin May Get A Higher IPO Price After Zillow-Trulia Deal, Banker Says

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Redfin
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In the world of online real estate companies, Seattle-based Zillow has dominated headlines lately with its plans to purchase rival Trulia. Is that bad news for Redfin, another competitor based in Seattle?

Zillow’s acquisition of Trulia will make it the biggest online real estate advertising business, according to Bloomberg. But that doesn’t necessarily shut out Redfin, says Charles Green, senior associate with the Seattle-based investment bank and advisory firm Cascade Capital Group.

Green says one reason is that Redfin’s search functions deliver the best results. 

"Redfin offers a very good user interface, and I think they’ll continue to grow because of that," he said.

Redfin is privately held, but has been talking about selling shares to the public. Green says the fact that Zillow is paying $3.5 billion in stock for Trulia means Redfin will probably be able to command a healthy share price if it goes public.

"It probably is a good sign for them," he said.

Green says the fact that Zillow is willing to pay so much for Trulia is a signal to investors that the online real-estate industry still has a lot of room to grow.

In July 2017, Ashley Gross became KNKX's youth and education reporter after years of covering the business and labor beat. She joined the station in May 2012 and previously worked five years at WBEZ in Chicago, where she reported on business and the economy. Her work telling the human side of the mortgage crisis garnered awards from the Illinois Associated Press and the Chicago Headline Club. She's also reported for the Alaska Public Radio Network in Anchorage and for Bloomberg News in San Francisco.