Zillow buying StreetEasy for $50 million

Monday, 19 Aug 2013 | 8:38 AM ET
Tim Boyle | Bloomberg | Getty Images

Zillow is buying the New York City-focused online real estate company StreetEasy for $50 million to strengthen its foothold in on one of the country's most lucrative markets.

StreetEasy, founded in 2006, offers sales and rental listings through partnerships with New York real estate firms. It also provides information about condominiums, co-ops, new developments and luxury real estate.

"StreetEasy is an incredibly strong and recognized brand in New York City, and complements Zillow's dominant and growing national brand," Zillow CEO Spencer Rascoff said in a statement.

The buyout is expected to close in the next few weeks.

(Read more: Why Rising Mortgage Rates May Trap You: Zillow CEO)

What Zillow CEO hopes to hear from the president
Zillow CEO Spencer Rascoff talks about the company's second-quarter earnings miss and what he expects to hear about the real estate market when he hosts a social media roundtable on housing policy with President Barack Obama on Wednesday.

Zillow also announced on Monday a public offering of 2.5 million shares. Certain shareholders are offering an additional 2.5 million shares. The company won't receive any proceeds from the the selling stockholders.

Zillow plans to give the underwriters a 30-day option to buy up to an additional 753,522 shares.

Earlier this month Zillow reported second-quarter adjusted earnings and revenue that topped analyst expectations.

(Read more: Why is Obama on Zillow?)

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