Zillow Paid Only $1 Million in Cash for Postlets Acquisition

Zillow paid only $1 million in cash to acquire Postlets, a company used by real estate agents to get the word out on thousands of for-sale and for-rent listings.

The company announced the acquisition last month, but only disclosed the price in a document filed with the SEC today.

The Seattle-based real estate listings company, which filed for an IPO after the acquisition took place, did not actually name the company in the filing, but said “it acquired all of the operating assets of a real estate agent and rental property manager marketing service company.”

That matches the description of Postlets, which aggregates listings and distributes them across a number of sites, including Zillow and even some of its competitors, such as Trulia.

In the filing, Zillow said it intends to offer the service as part of its platform for real estate professionals as an additional tool for marketing their listings across the web. In addition to the cash, Zillow also paid with 700,000 shares of common stock.

Zillow is seeking to raise $57 million in the public markets, including a $5 million private placement. Also disclosed in the updated filing was the information that the company expected to be listed on the Nasdaq under the ticker symbol “Z.”

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik