Tiger Global Management has unveiled they’ve purchased a 9.5 percent stake in publicly-traded Zillow, according to a U.S. Securities and Exchange Commission (SEC) filing.
Zillow shares spiked over five percent in early-morning trading, surpassing $98 per share. With stocks up over 70 percent this year, the company now has a market value of over $3.8 billion.
Analysts anticipate that Zillow stocks will have a very strong day today and will close on a high note. Zillow has been particularly aggressive lately, and closing this deal could be their fuel for the show of strength.
You may recognize the name Tiger Global Management, and that’s because they’re the same firm that invested $50 million into Redfin just six months ago.
They’ve also invested recently in Quora, Eventbrite, Square, Automattic, Credit Karma, and CommonFloor (which is poised to be India’s Zillow).
Tiger Global playing both sides?
The New York-based firm has raised over $4.20 billion in funding since 2001, and invests in private sector as well as publicly-traded companies.
Tiger Global is betting big on real estate, but what most fascinates us is that they’re playing more than one angle, putting money on the real estate search and technology side while also investing in the brokerage side. Sure, they have a lot of other huge investments, but we’re seeing a trend, and it’s pointed directly at real estate and technology.
Bob Bemis, Founder at Procuring Cause Advisors opines, “There are some big bets being laid down in the online world. James Packer (Australian investor) disclosed a 10% owner ship interest in Zillow late last year. Tiger Global put $50 million into Redfin in what most analysts see as a pre-IPO bet, and now is buying 10% of Zillow which could seen be a hedge bet.”
“But these are savvy investors who specialize in high-tech start-ups or early growth companies,” Bemis added. “One must respect that they’ve done their research and know what they’re doing. They are clearly backing the companies they see as future winners.”
