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Ray Schmitz
April 11, 2011 at 3:08 pm
Aside frmthe obvious competition with Trulia and move, several potential interpretations may all apply:
1) Postlets is worth more to Zillow than as a standalone firm
(obvious)
2) Zillow needs to “bulk up” to help sell a story that revenues will keep growing as it preps for an IPO
(probably true)
3) Someone else would buy Postlets, so Zillow acquired it defensively (this is the explanation the article suggests)
Not necessarily true, but relevant in these situations:
4) Once sufficiently established, firms stop becoming entrepreneurial enough to innovate internally. Buying becomes easier.
(time will tell)
Lani Rosales
April 12, 2011 at 1:10 pm
Very interesting thoughts, Ray. My brain is churning! 🙂
Graham
April 13, 2011 at 12:52 am
Interesting. I wonder how things are going to work out with Postlets continuing to syndicate to competitors of Zillow?