Zillow Seems to be on the Prowl for More Market Share

Zillow Inc. is acquiring real estate technology provider Diverse Solutions, a California startup, for $7.8 million in cash and stock, the company announced on the same day it reported record third-quarter revenue of $19.1 million.

Diverse Solutions provides listings content and powers property searches for real estate agents' websites and mobile platforms. It is a small company with only 18 employees but it has an impact that seems much larger.

Zillow will not change the name nor the operating structure keeping the founder and CEO Justin LaJoie. However, LaJoie will be joining Zillow as vice president of industry solutions.

This is Zillow's second quarter as a publicly traded company, following a successful IPO last July.

Does this mean we will see more advertising here on the Rain for Diverse Solutions?

I would bet on it.

Is that a bad thing? Probably not since we all use something similar on our own websites.

Zillow likely acquired the company to try to keep up with Trulia who is also building relationships with local MLSs.