Zillow Makes $7.8 Million Acquisition for More Agent Tools

As part of its third-quarter earnings release today, Zillow said it has acquired Diverse Solutions, which helps real estate agents market their Web sites, for $7.8 million.

Seattle-based Zillow said it acquired substantially all of the assets of the Irvine, Calif.-based company.

Diverse Solutions Founder and CEO Justin LaJoie will become the VP of industry solutions at Zillow.

Separately, Zillow announced its second earnings release as a public company.

The company reported record revenues in the third quarter of $19.1 million, up 132 percent year over year.

The company lost $570,000 during the quarter, but when excluding a charge of $1.7 million associated with the move of its headquarters, it would have reported a profit of $1.2 million, or 5 cents a share.

Additionally, it raised its guidance for full-year revenues and profits, not including some items.

Revenues for the full year are now expected to be in the range of about $63 million to $64 million, representing a 108 percent growth rate over 2010. Adjusted EBITDA, which excludes some items, is expected to be in the range of $9 million to $10 million.

In after-hours trading, the stock increased 87 cents a share, or 3.27 percent, to $27.50.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work