Seattle's Zillow plans $5.5 million private placement of class A stock

Real estate information site also to price its initial public offering

By Devika Patel

Knoxville, Tenn., April 18 - Zillow, Inc. will raise $5.5 million in a private placement of stock, according to an S-1 filed Monday with the Securities and Exchange Commission. It also plans an initial public offering of stock.

The Seattle- based company will sell $5 million of class A common shares to funds affiliated with Technology Crossover Ventures and $500,000 of stock to PAR Investment Partners, LP in the private placement. The investors will buy the shares at a price equal to that of those sold in the public offering, which is yet to be determined.

Citi, Allen & Co., Needham & Co., LLC, ThinkEquity LLC and First Washington Corp. are the agents for the public sale.

Proceeds will be used for general corporate purposes, including working capital. The company also may use a portion of these proceeds to acquire or invest in complementary businesses, products or technologies.

The private company's advertising-supported site provides a free estimated market value for nearly every home in America. On Feb. 3, it launched its strategic relationship with Yahoo! Real Estate, through which it provides real estate listings and has exclusive rights to sell subscription advertising and certain graphical advertising throughout the Yahoo! Real Estate site. During March, the company acquired the operating assets of Postlets LLC, a real estate agent and rental property manager marketing service.

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