Breaking: Zillow Group Acquires Follow Up Boss for $500M
In a significant move, Zillow Group has announced the acquisition of Follow Up Boss, a leading customer relationship management (CRM) system widely used by real estate agents and brokers. The deal includes an upfront cash payment of $400 million, with an additional $100 million as an earnout.
The acquisition brings Follow Up Boss's 100 employees, including Co-founders Dan Corkill and Tom Markov, under the Zillow Group umbrella. However, the company will continue to operate independently, maintaining its brand identity—a strategy consistent with Zillow’s 2021 acquisition of Showing Time.
Errol Samuelson, Chief Industry Development Officer at Zillow Group, stated that the acquisition aligns with the company's ongoing effort to develop a "housing super app." The new platform aims to streamline communications between agents, teams, and their clients.
Samuelson confirmed that existing integrations between Zillow and Follow Up Boss would remain in place and suggested that future partnerships could expand the system's capabilities.
The acquisition raises questions about data privacy and the growing consolidation of tools in the real estate sector. However, Samuelson reassured users that all data entered into Follow Up Boss would continue to belong to the individual or entity that entered it, emphasizing that “everything you loved about Follow Up Boss is only going to get better.”
Zillow's new acquisition promises to supercharge Follow Up Boss's organic growth trajectory, offering significant investment and technological resources. According to Samuelson, Zillow's backing will deliver "a much greater level of investment and infusion of tech into the team and product."
The news comes amid a challenging period for Zillow, following the Sitzer/Burnett class-action lawsuit that caused a 7% drop in its stock price. Currently, Zillow shares continue to trade around $35.50 per share in after-hours trading.
This acquisition is a crucial milestone in Zillow's strategy to dominate the real estate tech landscape and will be closely watched by industry analysts and professionals. Further developments are anticipated.