StreetEasy, founded 2006, has about 1.2 million monthly unique users, primarily residential real-estate shoppers in the New York region, Seattle, Washington-based Zillow said in a statement today. StreetEasy employs 24 people.
Zillow has been making buyouts to retain growth as it faces competition from Trulia Inc. (NYSE:TRLA) and other real-estate online portals amid housing market recovery.
Zillow plans a 2.5 million offering of class A common stock and said that an additional 2.52 million of shares will be sold by existing shareholders, the company said in a separate statement today.
Zillow, which reported 61 million unique visitors at the end of July, said it will use the net proceeds of the offering for general corporate purposes, which may include working capital, sales and marketing activities.
Zillow may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement its business.
Zillow shares retreated 6 percent to $85.79 at 3:03 p.m. in New York after touching $85.09, the lowest intraday price since Aug. 8.
The shares have more than tripled this year. The current consensus among 10 investment analysts is to "hold" the stock.