Zillow Acquires IDX Vendor Diverse Solutions, What Does It Mean?

Nov 2, 2011  |  Michael Wurzer

Zillow announced today that it acquired IDX vendor Diverse Solutions for $7.8 million in cash and stock.  I’m interested in learning what others think about this acquisition.  Here are some of my initial questions and thoughts:

  1. Zillow likely acquired Diverse primarily as a way to build relationships with more MLSs. We know Trulia has been amping up its efforts to establish relationships with MLSs and this move by Zillow seems like a response to those efforts.
  2. Zillow has said that 60% of its revenue is coming from sales to brokers and agents, so adding IDX products to the mix jives with their primary sales target.
  3. Diverse has IDX data from quite a few MLSs but their license agreements won’t allow Zillow to use that data for any purpose other than IDX.  However, I can imagine quite a few interesting products that can be built on top of IDX data that will blur the lines of what Zillow/Diverse offers their IDX customers.  This will be the most interesting development to watch.
  4. Will Zillow offer its ad network to brokers and agents using Diverse’s IDX product as a potential revenue share opportunity?  Will that be interesting to agents and brokers?
  5. Will Zillow try something like Roost tried initially, with an aggregated IDX portal?
  6. What will the MLS response be to this acquisition?  Quite likely many will be digging out their contracts with Diverse to make sure the license agreements lock down the data tight regarding usage.

Overall, this is an excellent move by Zillow and a nice win for Justin LaJoie and the entire Diverse Solutions team. Congratulations to all of you!

6 Responses to “Zillow Acquires IDX Vendor Diverse Solutions, What Does It Mean?”

  1. John Wake says:

    You wrote, “I can imagine quite a few interesting products that can be built on top of IDX data that will blur the lines of what Zillow/Diverse offers their IDX customers.”

    Okay, I’ll bite. What are you thinking?

    • Michael Wurzer says:

      Given that we’re competitors to DS/Z, my crazy product ideas are probably best kept to myself.

  2. John Wake says:

    It was worth a shot.

  3. Paula Henry says:

    As a REALTOR® and something for my colleagues to think about, Why would I do business with and give my money to someone who is a direct competitor?

    I think we’ll definitely see lots of widgets with links back to Z.

  4. Very Elementary…..Why have we as Realtors allowed the MLS,
    being the Heart and Soul of our Profession, to be given to
    third party portals that in return want us to pay to place our
    name and number next to our inventory? Zillow just quoted me
    a mere 169.00 for a fraction of a zip code. So add up Realtor.com,
    Trulia, Hotpads, Point2agent, TREB and many more and add up the investment on the Realtor. Doesn’t make sense for the Real Estate industry as it is obvious all the above portals to include Realtor.com are making lots of monies off our Hard Work and Dedication to our Profession,

  5. John Wake says:

    It would be easy enough for an MLS to stop sending data to everyone else and just allow it’s members to show MLS data on their member websites (and the MLS’s own website, if they have one).

    If an MLS turned off their spigot of listing information, however, many individual brokerages would turn on spigots of their listing information.

    Listing agents tend to want their listings be published online in as many places as possible.