Zillow Group to raise nearly $1B through stock and debt offerings to help support real estate business
Zillow Group is looking to inject some cash into its business. The Seattle real estate giant on Wednesday announced pricing for stock and debt offerings that will provide up to $993 million in net proceeds.
Zillow said it will use the money to repurchase a portion of its outstanding convertible senior notes, as well as “general corporate purposes.”
“Additionally, Zillow Group may choose to use a portion of the net proceeds to expand its current business through acquisitions of, or investments in, other businesses, products or technologies,” the company said in a press release .
Zillow beat first quarter earnings expectations last week as CEO Rich Barton expressed optimism for the future of real estate amid the COVID-19 pandemic. Shares are down about 10% this week.
Other companies are using a similar strategy to get through the pandemic. Uber announced a proposed $750 million senior notes offering on Wednesday.