Is Zillow a $50 Billion Opportunity?
All you industry insiders should certainly read Rob Hahn’s most recent post that digs into whether Zillow is truly a company that will reach a $50 billion valuation.
I honestly have no idea what the long term valuation will be, but do have one word to add to the discussion:
International
I’ve traveled all over the place (while building Horizon / Oh Hey World), and generally look up real estate sites in the locations I visit. Let me tell you. They are mostly (not all) complete crap. I’d be willing to bet a pretty penny Zillow going into international markets is a matter of when, not if. There is lots and lots of money to be made outside the confines of the US that should factor into the long term valuation equation.
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Posted at 08:27h, 14 MarchAgreed that outside the U.S. the icings are slim on significantly informative property sites, but experience in each market will heavily impact their success levels and NewsCorp absolutely has the advantage there. With the mega $¥£€ poring into this market segment it will be lively to watch over the next five years.
Teena GG
Posted at 08:28h, 14 MarchAgreed that outside the U.S. the pickings are slim on significantly informative property sites, but a firms experience in each market will heavily impact their success levels and NewsCorp absolutely has the advantage there. With the mega $¥£€ pouring into this market segment it will be lively to watch over the next five years.
Teena GG
Posted at 08:28h, 14 MarchAgreed that outside the U.S. the pickings are slim on significantly informative property sites, but a firms experience in each market will heavily impact their success levels and NewsCorp absolutely has the advantage there. With the mega $¥£€ pouring into this market segment it will be lively to watch over the next five years.
Malcolm Lewis
Posted at 11:29h, 14 MarchNice article from Rob.
Based on typical multiples for established tech companies (eg Apple @ 17x ) and optimistic multiples for high-growth tech businesses (eg Facebook @ 70x), Zillow has a long way to go.
A $50B valuation would require approx $2.9B in earnings assuming Apples’s 17x multiple and $700M+ in earnings assuming Facebook’s 70x multiple.
Zillow is currently losing money on approx $360M in revenue.