Australian investment maybe sign of Zillow going international.
The Aussie's know what everyone in the world knows... Zillow is gonna be the next niche in real estate, it is the market leader and will become vital to the real estate industry. The same way PCLN is vital to travel industry, the same way AMZN is vital to retail industry, NFLX to the movie industry.
Caledonia, Cavaline holding large position in Zillow maybe foretell sign that Zillow maybe moving internationally possibly to Australia, New Zealand. If they do go internationally get ready for a huge huge POP. Market cap of $10B is waiting.
The population of Australia is 23 million and NZ is 4.4 million. Not worth the cost of an air ticket for Zillow to bother with such a small market when Realestate is already the #1 property website in Australia with 18.6 million unique users a month. Most likely Zillow will use the bulk of it proceeds from the recent secondary offering to acquire Zoopla in the UK which is more in line with the Zillow model - in other words lousy accuracy, poor data management and incompetent home value estimates. Just read the puerile tweets by Zillow CEO Spencer Rascoff where he makes frequent comments about the UK housing market. The UK has a population of 65 million and London is a property hotspot where the StreetEasy brand could also be rolled out. At least that makes some sense.
Also, about the 'Aussies knowing what everyone in the world knows.....' it seems that the Australian Business Review Weekly website thinks that James Packer may have got his "timing wrong" with his Zillow share purchase. They also mention that he was pitched a presentation by Caledonia Investments that Zillow had the chance to build a market position like REA realestate website in Australia - maybe they took him for a sucker knowing that any buying interest by Packer would substantially increase the Zillow stock price and Caledonia Investments potential profit if they were to sell their 16.4% shareholding in ZIllow. It will be interesting if the SEC investigates recent price movements in Zillow.
When an investment firm buys several hundreds-million dollars in investment in a stock..... the timing is NEVER wrong. They have done their research, due diligence, spoken with company CEO, CFO, etc. THEY ARE IN IT FOR THE LONG TERM... Whether they bought the stock at $50 or at $95 is irrelevant..... the same is true of an investment in PCLN in 2008 -2009 whether you bought at $50 or $95 the stock is at $900+ in 2013 (5 yrs later). Zillow will be well north of $500 by 2018...... will it make a difference if they bought at $50 or $95???