Zillow Group said it intends to acquire rival Redfin Corp. in an all-stock deal valued at about $3.2 billion. The deal values Redfin at roughly $15.50 per share, a significant premium to its recent trading levels.
The acquisition would bring together two major online real estate brands, combining Zillow’s large portal audience with Redfin’s technology-focused brokerage model. Zillow plans to integrate Redfin’s brokerage operations and agent tools into a broader platform for buying and selling homes.
Redfin has struggled to turn a profit amid a fluctuating housing market. The deal is expected to face significant antitrust scrutiny because the combined company would have substantial market share in digital real estate advertising and brokerage.