By John Cook
Zillow continues to bolster its position in the online real estate sector, announcing today yet another acquisition.
This time the deal happens to be in the consumer arena, with Zillow agreeing to pay $16 million in cash for San Francisco-based rental search site HotPads. It marks the sixth acquisition for Zillow in less than two years, and follows the company’s recent agreement to gobble up Mortech (which was announced earlier this month).
HotPads, which raised $2.3 million in funding five years ago from Meakem Becker Venture Capital and others, attracted nearly 2.8 million unique visitors last month. (By comparison, Zillow now attracts about 36 million monthly unique visitors).
“This acquisition represents a significant step-change for Zillow Rentals, allowing us to dramatically increase the number of leads we send to landlords. HotPads has a younger, complementary and rental-focused audience. Now Zillow will become even more relevant to consumers at the beginning of their real estate life cycle,” said Zillow CEO Spencer Rascoff in a statement. “In addition, by acquiring an amazing engineering team, with a deep understanding of how people search for rentals and become tenants, we expect to accelerate our innovation and monetization of our rental marketplace.”
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