Zillow to buy Trulia for $3.5 billion in stock

(NBC News) — Zillow and Trulia are shacking up.

Zillow will buy its rival real estate website for $3.5 billion in stock in a deal that’s expected to close next year.

Both brands will remain separate after the deal, but Zillow’s CEO Spencer Rascoff will run the company.

Trulia Inc. CEO Pete Flint will stay in his post and remain on the board. Another Trulia director will join the combined company’s board after the transaction is complete.

Both companies’ boards approved the deal, but shareholders still must OK it.

The transaction is targeted to close next year.

Why the hook up? The companies said they expected the deal to help save at least $100 million per year by 2016.

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