TECH STOCKS: Zillow Rises On Trulia Acquisition

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks started the week off on a mostly negative note Monday, with declines coming from many sector leaders.

Meanwhile, Zillow (ZILLOW.XX)has agreed to buy rival Trulia Inc. (TRLA) in a stock-for-stock deal that would bring together two of the biggest names in the fast-growing market for online real-estate information. The deal is expected to close in 2015.

Zillow said it will continue to use the Trulia brand. Trulia Chief Executive Pete Flint will retain his title and report to Zillow CEO Spencer Rascoff. Additionally, Flint, and a second member of Trulia's board of directors will join Zillow's board.

While both companies are known mostly as resources of real-estate information for consumers, Zillow said in a statement that they "are primarily media companies, generating the majority of revenue through advertising sales to real estate professionals." In June, Zillow reported 83 million unique visitors across its mobile and Web platforms, while Trulia reported 54 million unique visitors during the month.

Trulia shares rose more than 9%, to $61.45, while Zillow was off by 6% at $149.03 a share.

In addition to Trulia, mild gains also came from Apple Inc. (AAPL), Priceline.com Inc. (PCLN), IBM Corp. (IBM) and Oracle Corp. (ORCL).

The Nasdaq Composite Index (RIXF) fell almost 25 points to 4,425, and the Philadelphia Semiconductor Index (SOX) was off by almost 1%.

More must-read news from MarketWatch:

Zillow to acquire Trulia in $3.5 billion all-stock deal

Why taking on more debt is the American way

Ten great Rolling Stones songs to mark Mick Jagger turning 71

Subscribe to WSJ: http://online.wsj.com?mod=djnwires