Wowsa. Zillow just added a ton of cash to its balance sheet, pricing 3.425 million shares at $43 per share, bringing in a cool $147 million for the online real estate company.

We reported on the company’s filing for the secondary offering yesterday, but it just priced.

In addition to the 3.425 million shares offered by Zillow, executives and board members Rich Barton, Lloyd Frink and Erik Blachford sold an additional 575,000 shares.

Spencer Rascoff

Zillow’s stock has more than doubled from the IPO price of $20 per share in July 2011, with the stock closing today above $43 per share. It is one of the top performing new tech stocks in the country, and the new riches certainly will help cement its lead over Trulia, which earlier this year filed to raise up to $75 million in an IPO.

Here’s the key question: What in the heck is Zillow going to do with all of that new cash?

The company, with a market value of $1.2 billion, is profitable. But it has shown an interest in buying other companies, completing three deals in the past two years.

Could another buy be in the works?

With new offering of stock, Zillow has more than doubled its cash position.  At the end of the second quarter, Zillow had about $70 million in cash, cash equivalents and short-term investments on the books.

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  • Kevin Lisota

    Give ’em enough money to potentially buy Trulia :)

    • johnhcook

      I was thinking the same thing, but don’t you think it would be a bad “cultural fit.” :)

      • Kevin Lisota

        Maybe. Obviously they’ve been at odds as competitors. But remember that the game their in is really a 3-horse race between them, Trulia and (Move). A combo of Z&T against Move seems one potential strategy for the extra dough.

        • Ian Leong

          True, but is NAR, has proprietary listings, agreements with all MLS. I think the “Cultural fit” referenced by @johnhcook was regarding corporate culture of ex-MSFT leadership vs true startup culture created by Sami and Sean.

          • Mike Sparr

            Correction: Sami and Pete (Flint) ;-)

          • Ian Leong

            @8f9367af5636ec6666bac915f3dfea23:disqus you are correct, sir. I haven’t been in real estate vertical in many moons. Back when Mr. Black was there.

        • Victor Lund

          dont forget –

  • Nikesh Parekh

    Really phenomenal execution by Spencer and the Zillow team. Brilliant strategy to get out ahead of the Trulia IPO with their stock offering. In general when a company announces a stock offering, the stock price decreases to adjust for the dilution investors will be taking. In Zillow’s case, this would have been like 12% or something. Instead, the Zillow stock went up today based on the offering, which is almost unheard of. Kudos to Zillow team.

  • confusedguy

    Can someone tell me if these shares dilute current share count? I can never tell when an offering is dilutive and when it’s not.

    • Nikesh Parekh

      Yes. Any stock issuance dilutes current shareholders. Only true non-convertible debt is non-dilutive, but comes with additional security and guaranteed returns (interest payments), not found in equity issuances.

  • Victor Lund

    Maybe they should buy REALOGY, and become the largest brokerage in the world. This tranche would go a long way toward securing a strong position within that company.

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