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WATER OUT OF TWO STONES MASTERS OF INTERNATIONAL BUSINESS EDWARD LEE DAVID ALDAMA SHU GAO
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Page 1: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

WATER OUT OF TWO STONES

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 2: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

I. Introduction

In 2012, Zillow CEO Spencer Rascoff likened his newly launched business model to the task of

getting water out of a stone1, a reference to his view of the industry’s trapped value and the

evaporation of company profit despite persistent expenditure. After two years, several

acquisitions, a significant capital raise, and consecutive years of earnings loss, Mr. Rascoff’s

latest solution is to simply try to get water from another rock. Yet, the market has continued to

favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry

with Zillow trading at a market price of $108.73 per share as of Oct 31 close and Trulia moving

in lockstep. We view this market expectation as fundamentally mispriced, principally due to their

weak position relative to their clients, suppliers, and competitors. The growth story of Zillow and

Trulia has been certainly noteworthy, but all good things must come to an end, some earlier than

others.

II. Deal Valuation

Which company is getting the better deal and why?

While every financial news pundit proclaimed Zillow’s acquisition of Trulia as a deal with a $3.5

billion price tag, the more relevant term to emphasize would have been the exchange ratio, fixed

at 0.444 Zillow shares for one Trulia share. As a stock-only transaction, the sole compensation

for Trulia shareholders will be 0.444 shares of Zillow for each share of Trulia once the

transaction closes.

1 “CMLS question and Zillow answer”, YouTube 0:59 - https://www.youtube.com/watch?feature=player_embedded&v=mnwOcW53gK0

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 3: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

If we look at the stock prices of Zillow and Trulia, normalized as of October last year, there is a

trend of divergence up until deal announcement at the end of July (see green-shaded areas in the

exhibit below).

Zillow clearly outperformed Trulia over the nine months prior to the deal, giving Zillow the

negotiating advantage.

The table below shows the implied exchange ratio between the two companies steadily

decreasing in favor of Zillow, arguably showing that Trulia needed Zillow more than Zillow

needed Trulia.

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 4: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

Zillow also retained the option to purchase Move instead of Trulia, further adding to their

negotiating leverage. However, despite such leverage, Zillow paid a sizable acquisition premium

of 37%, if one uses the difference between the implied exchange ratio of 0.32 and the actual

exchange ratio of 0.44.

Of the 37%, a control premium is certainly included. Zillow will have clear preservation of

control in the newly created holding company Zebra HoldCo as shown in the tables below.

Effectively, Trulia shareholders will own one-third of Zebra HoldCo but hold only 15% of the

voting power.

Of the 37%, a sizable synergy premium is also included. However, the risk that the synergy

value will not materialize is shared with Trulia shareholders. Specifically, Trulia holds one-third

of the synergy risk.

Does the structure of the deal make sense for each company?

The structure of the deal, a stock-only transaction, makes sense for Zillow given its inflated

valuation prior to deal announcement. Trulia was similarly overvalued, and its market price was

highly correlated with Zillow’s price even prior to the deal. We will discuss the reasons why we

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 5: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

believe these companies to have been overvalued at the time of deal announcement --as well

as at present-- in a subsequent section of this report. If the outlook of Trulia’s shareholders on

the industry and Zillow’s management is favorable, the deal structure makes sense for Trulia

since a stock-only transaction results in less value destruction than a cash-only or cash-stock

transaction.

There is also an accounting rationale for a stock-only acquisition versus cash. When two

companies merge via a stock-only transaction, the book values of the assets and liabilities are

combined rather than the market values (“pooling of interests method”). No goodwill is created

or amortized by the acquisition. When companies merge via a cash transaction, goodwill is

created and amortization expenses are generated (“purchase method”). Thus, earnings per share

will be higher through the use of a stock-only transaction, certainly important for a company

straddling the profitability line.

What will the futures likely be for each company on a standalone basis if the transaction

fails to close?

Both companies are likely to be worse off in terms of their financial and strategic position if the

transaction fails to close. In addition to losses from sunk transaction costs and termination fees,

Zillow and Trulia will fail to materialize on critical cost savings in sales, marketing and R&D

expenses.

From a strategic viewpoint, the merger has become essential to Zillow and Trulia due to the

entrance of News Corp as a heavyweight competitor through its acquisition of Move Inc. Failure

to consolidate would present News Corp a clear opportunity to outmuscle and dominate the

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 6: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

space. Also, an implicit strategic objective behind the Zillow-Trulia merger is to gain “mind-

share” among realtors through a prospective monopoly on the mind-share of consumers. Both

types of mind share are critical to profitability and failure to achieve either would severely limit

the futures of both companies.

Based on the companies’ present combined market valuations, what assumptions about

their future would you have to make in order to buy stock in the combined company?

Bundled within current market valuations of Zillow and Trulia include market expectations

surrounding (1) deal completion, (2) structural change in the real estate industry, (3) the

competitive landscape, and (4) synergy value from the merger.

The current market price of Trulia discounts the likelihood of the merger closing by $2.36. We

view the probability of deal completion as very likely despite two routine acquisition hurdles,

FTC approval and shareholder approval from each company.

While some have voiced concerns that a merged Zillow-Trulia might obtain monopolistic pricing

power, the structure of their current revenue model, whereby their paying subscribers are

effectively their content providers, refutes this possibility. Both Zillow and Trulia receive the

majority of their listings data from MLS systems. The threat of price increase is generally

neutralized by the threat of listings withdrawal. Thus, on a practical level, the FTC should see no

anticompetitive issue arising from the merger. Unfortunately, such a revenue structure does not

bode well for Zillow or Trulia in a strategic sense, which we will discuss later.

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 7: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

The ultimate objective of the FTC is to protect the consumer, in this case, current or prospective

homeowners. In fact, disintermediation of the MLS structure has been implicitly welcomed, as

evidenced by a 2008 mandate by the U.S. Department of Justice2 requiring all MLS systems to

allow membership and access to Internet-based competitors.

Also, despite two shareholder lawsuits currently filed against Trulia, we view both cases as

routine and akin to lawyers chasing after ambulances. There is shared incentive among all

stakeholders to close the deal as quickly as possible. The boards of both companies have

approved the deal.

The current market price of Zillow assumes that the present structure of the U.S. real estate

industry must fundamentally change; that is, that MLS systems will cease to exist in their current

form and function.

The market opportunity for real estate portals like Zillow, Trulia, and Realtor.com (ZTR) is

significant. Out of $1 trillion+ in annual real estate transaction volume, ~$60 billion in

2 http://www.justice.gov/atr/cases/nar.htm

MASTERS OF INTERNATIONAL BUSINESS EDWARD LEE DAVID ALDAMA SHU GAO

Page 8: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

commissions flow to real estate agents and brokers. Agents and brokers then spend ~$14 billion

on marketing. Of that $14 billion, only ~$1 billion is currently captured by ZTR portals. In other

words, the pie is presumably large for the taking.

*ORED: Online Real Estate Databases, or portals, such as Zillow, Trulia, and Realtor.com

Yet, the current structure of the industry, fragmented with MLS systems, prevents Zillow and

Trulia from capturing a larger share. MLS systems have long been a pillar of the U.S. real estate

industry, facilitating information exchange between brokers and agents. As an advertising

medium, every MLS has given their member agents significant pricing and market power by

perpetuating the feeling among homeowners that their property will not sell unless placed on an

MLS. It is a key reason why average commission fees remain high in the US. While some

international markets such as Australia have eliminated the need for buyer agents, the MLS

ecosystem in the US provides sustenance for their continued existence.

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 9: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

Zillow and Trulia receive the majority of their content from MLS systems across the nation.

Under their current revenue model, realtors associated with large MLS systems incur less fees

and receive preferential placement due to their substantial negotiating power as suppliers, while

real estate agents not associated with such MLS systems constitute the bulk of their revenue. In

other words, big-ticket MLS systems obtain subscriber benefits at little to no cost while smaller

realtor networks and individual realtors are “milked”, effectively killing off or alienating their

primary revenue stream. One example of a large realtor network exerting its leverage as a

supplier is Coldwell Banker of Realogy, whose agents are able to place listings on Zillow and

eight other portals under similar or lesser fees than if the agents subscribed to the portals

individually.3 Similar relationships with other large realtor networks have prevented both Zillow

and Trulia from pricing their services in an optimal and sustainable manner.

3 Coldwell Banker’s “2014 - 2015 Fab Plus Featured Agent Branding Program”

MASTERS OF INTERNATIONAL BUSINESS EDWARD LEE DAVID ALDAMA SHU GAO

Page 10: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

It is only when realtors cease to have the MLS negotiating lever that Zillow and Trulia can

become profitable. This would happen only if realtors switched en masse from MLS systems and

subscribed to either Zillow or Trulia, a so-called tipping point whereby the value of Zillow or

Trulia as a lead-generating platform becomes overwhelming great due to consistent dominance

in consumer mind share, and the majority of realtors recognize them as such. Zillow has bet on

reaching this tipping point, and, at current valuations, the market concurs, albeit to a decreasing

degree over the past few months.

We view the possibility of Zillow reaching this tipping point as highly unlikely before or after

the merger. Although the status quo will undergo further change with respect to the MLS

systems, we see the resulting profits of disintermediation flowing to the firm best positioned to

capture not only consumer mind share but also realtor mind share. That firm is not Zillow-Trulia.

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 11: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

The current market price of Zillow does not sufficiently discount for the competition posed by

Move Inc, operator of the website Realtor.com and recently acquired by News Corporation.

Since 1996, Move Inc has been in partnership with the NAR, allowing Realtor.com to source its

listings data directly from nearly all 800+ MLS systems in the US on a timely and accurate basis.

We view this as a critical advantage for Move Inc.

As a partner of the NAR, Move Inc is better positioned than Zillow and Trulia to negotiate with

every MLS system and to coordinate a mutually beneficial relationship. In turn, News

Corporation can bring tremendous value to MLS systems with its financial resources, an

immediate transaction-ready audience, and global cross-promotional opportunities.4

Like Zillow-Trulia, Move Inc is dependent on the eventual disintermediation of the MLS. The

key difference, however, is that MLS systems will more readily change if they can dictate the

terms of their own disintermediation. We see Move Inc and the NAR laying the groundwork for

this to happen immediately after the News Corp acquisition of Move Inc closes this year.

Finally, the actual synergy value of the Zillow-Trulia merger is highly questionable. Pricing

power will continue to be restrained. Overhead redundancies may be streamlined, but marketing

expenditures are likely to remain elevated. There will be a greater consumer audience but

considerable overlap as well. On the other hand, News Corps’ acquisition of Move Inc has

various complementary aspects. Move Inc reaches a new plateau of audiences, reduces

marketing expenditure, and leverages the News Corp technological platform.

4 “An Open Letter to the Industry” - by Move on Sep 30, 2014 http://industry.move.com/letter/

MASTERS OF INTERNATIONAL BUSINESS EDWARD LEE DAVID ALDAMA SHU GAO

Page 12: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

Valuation Scenarios

We have modeled four stylized scenarios, which we believe illustrate the possible paths of

market evolution. All scenarios assume a realtor pool of 1.1 million agents, in line with NAR

estimations. For scenarios in which “market disruption” is modeled, immediate attrition of 25%

of this realtor pool is assumed.

All scenarios were constructed in “top-down” fashion; first, total subscriptor volume was

calculated, and then allocated to market participants, with 0.444 subscriptors being allocated to

Trulia per Zillow subscriptor. This assumption stems from the high confidence we have

regarding the Zillow-Trulia merger deal close.

Scenario 1: Market capture by Zebra HoldCo

Likelihood: Unlikely

In this scenario, we model the following possible outcome: the Zillow-Trulia merger in the

medium run by and large, displaces MLSs. This market disruption leads to increased pricing

power for the new incumbent, as both MLSs and realtors --on an individual level-- are left with

little option but to do business through and advertise on Online Real Estate Databases (OREDs),

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 13: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

particularly Zebra HoldCo --the Zillow/Trulia tag team. Thus, ARPU steadily increases for this

company, in line with newly gained market power.

We assume in this scenario that Zebra HoldCo --the Zillow-Trulia tag team-- captures 80% of

the market share within two years.

The mechanics of this market capture are left ambiguous --scale, for instance, could enable

innovative platform developments that propel greater consumer loyalty. Market dominance,

however, would likely arise from endogenous factors: a tipping point reached on the consumer

mind-share front would “herd” realtors into the fold of Zebra.

Subscribers CAGR%

(2014-2018) 39%

ARPU CAGR% (2014-2018)

6.1%

Annual SG&A Synergies $250M

Zebra Share Price $121

Scenario 2: Market capture by Move

Likelihood: Very likely

In this scenario, as in the above, market disruption is quite quick, and drastic. OREDs take over

the revenue pie, and ARPU takes on a steep upward trajectory --as realtors move en masse from

MLSs to online service providers. In contrast to Scenario 1, however, Move Inc. captures 80% of

the market, due largely to a marketing push enabled by News Corp’s media channels. This leaves

only 20% of the pie for Zebra HoldCo.

Subscribers CAGR%

(2014-2018) 7%

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 14: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

ARPU CAGR% (2014-2018)

2.5%

Annual SG&A Synergies $10M

Zebra Share Price $58

We believe this market scenario to be the only one with very high likelihood among those

modeled. The reasons we believe this scenario to be more likely are twofold: first, we indeed see

the US Real Estate market as being ripe for disruption. High agent commissions and a segmented

intermediation structure --with buyer’s agents, seller’s agents, and brokers all getting a piece of

the revenue pie-- are testament to the existence of extraordinary economic rents up for the taking.

Secondly, we believe that the economic moat around Zillow’s current “market incumbency” to

be quite flimsy. If someone is to capture the economic rents that the US housing market affords,

Scenario 3: Duopoly

Likelihood: Likely

As in the above scenarios, market disruption takes hold, yet the revenue pie proves large enough

for two competing OREDs to survive. Both Zebra HoldCo and Move Inc. capture a 50% market

share in this scenario, and revenue streams are split accordingly. ARPU evolves like in the first

two scenarios, as MLSs succumb to the new market incumbents

. Subscribers CAGR%

(2014-2018) 27%

ARPU CAGR% (2014-2018)

2.8%

Annual SG&A Synergies $50M

Zebra Share Price $75

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 15: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

Scenario 4: MLS retain pricing/market power

Likelihood: Unlikely

In the fourth scenario modeled, MLSs continue to dominate the market, and OREDs continue to

struggle. Revenue and earnings trajectories for both Zebra HoldCo and Move Inc. mirror the

market reality of the past few years, as market disruption fails to fully materialize. ARPU

stagnates, as ORED pricing power stays flat, and both companies are incapable of dialing back

marketing and sales expenditures.

Subscribers CAGR%

(2014-2018) 7.7%

ARPU CAGR% (2014-2018)

1.7%

Annual SG&A Synergies $5M

Zebra Share Price $51

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 16: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

III. Interest rates, real estate transactions, valuation implications

On the surface, the horizon looks bleak for the American housing market, which hasn’t regained

its pre-crisis momentum. Additionally, sales of new homes have been very volatile this year.5

Shares of publicly-traded homebuilders, to boot, are down YTD, around 7.9%.6

Cash buyers --many of them speculative or real-estate investors-- have been retreating steadily

from the market, as foreclosure properties become scarcer.7 This means that the sensitivity of the

housing market to interest hikes will increase, which has fed fears of a market crunch happening,

should interest rates rise rapidly.

However, we believe that market signals regarding the future of interest rates are mixed. As

lately as this week, for example, investor’s positions on two-year Fed futures were net-long,

indicating an expectation of increasing bond prices.8

Although the Fed’s “dot plot” --the expectations of the members of the rate-setting committee--

points to an aggressive rate hike, the market seems to expect a much less steep rate-increase

schedule (see graph below).

5http://www.washingtonpost.com/blogs/wonkblog/wp/2014/09/22/cash-buyers-retreat-from-housing-market-cooling-home-sales/ 6 Ibid. 7 Ibid. 8 Susanne Walker, Investors Whipsawed in Treasury Futures as Fed Optimism Rises, Bloomberg, October 31, 2014, http://www.bloomberg.com/news/2014-10-31/investors-whipsawed-in-treasury-futures-as-fed-optimism-rises.html.

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 17: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

When in doubt, they say, trust the market. In line with the market, we believe interest rates will

increase over the coming years, but they will follow a “slow and steady” trajectory. This should

leave ample space for pent-up housing demand to continue to propel the housing market upward.

Eventually, rising mortgage rates will take their toll, but this will only happen in the medium to

long runs.

Our modeling scenarios reflect our macro assumptions: there will be no noticeable dips in the

housing market due to rising rates --at least in a two to three year window-- in our estimation.

IV. Trades

Trade 1

The current price of Trulia over discounts the likelihood that the deal will close within six

months, presenting an opportunity for merger arbitrage.

• Long Trulia 1 share

• Short Zillow 0.444 shares

MASTERS OF INTERNATIONAL BUSINESS EDWARD LEE DAVID ALDAMA SHU GAO

Page 18: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

*Target and acquiring firm prices based on Friday, Oct 31 close

• Risk: Counteroffer for Trulia by media company

Trade 2

The current prices of Zillow and Trulia significantly overvalue the likelihood that Zillow and

Trulia, either separate or combined, will have the tools to disintermediate the MLS and profitably

compete with Move Inc.

• Short sale of Zillow

• Target price: $64

• Cover price: $80

SCENARIO Z-T PRICE PER SHARE

(2) Market capture by Move (Very likely) $64

(3) Duopoly between Move and Z-T (Likely) $80

We expect the price to fall to $64, but our conservative profit limit is $80.

• Risk: Offer for Zillow-Trulia by media company (e.g. Yahoo or Google)

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 19: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

EXHIBIT 1A: SCENARIO 1 REVENUE BUILD

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 20: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

EXHIBIT 1B: SCENARIO 1 ZEBRA PRO-FORMA-DCF

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 21: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

EXHIBIT 2A: SCENARIO 2 REVENUE BUILD

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 22: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

EXHIBIT 2B: SCENARIO 2 ZEBRA PRO-FORMA-DCF

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

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EXHIBIT 3A: SCENARIO 3 REVENUE BUILD

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 24: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

EXHIBIT 3B: SCENARIO 3 ZEBRA PRO-FORMA-DCF

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 25: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

EXHIBIT 4A: SCENARIO 4 REVENUE BUILD

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 26: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

EXHIBIT 4B: SCENARIO 4 ZEBRA PRO-FORMA-DCF

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO

Page 27: WATER OUT OF TWO STONES - The Economist · favor the potential of Zillow and Trulia to profitably disrupt the real estate brokerage industry with Zillow trading at a market price

MASTERS OF INTERNATIONAL BUSINESS

EDWARD LEE DAVID ALDAMA SHU GAO


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