I read with interest this morning about the rumors that Trulia and Realogy might be tying the knot. At least for a couple of minutes. I know that this is something that Rob Hahn was kinda sorta predicting, and I can understand the surface level appeal of that.
Here’s my take on it: Once you take a little bit deeper look you realize that there would be some advantages for REALOGY to float this idea. They are in large amounts of debt, and as we have seen with Zillow, being unprofitable (or at least not NEAR profitable enough to support a valuation) is often best helped by finding ways to tout new revenue potential.
In this case, the mere rumor of REALOGY floating this boosted stock prices for Trulia 10%. In one day.
Is it real? I don’t think so. (It might be and I would be the first to correct myself.) I don’t think that REALOGY has the muscle to pull it off. And I do not think that it would be good for Trulia. Can you see all of the agents who currently are buying space on Trulia but who are with independent brokerages or RE/MAX or KW or etc etc RUNNING for the exits?
The sound of those footsteps would be deafening.
That’s my take. What’s yours?