A
new partnership between Zillow and Redfin has sparked speculation about a potential merger. Key points include:

    Zillow is paying Redfin $100 million to be its exclusive rentals listings provider, with the goal of expanding its "enhanced markets" strategy.

    The deal makes Zillow the exclusive provider of multifamily rental listings on Redfin's sites, including Rent.com and ApartmentGuide.com.

    Redfin will receive additional revenue from leads generated via its network of sites, while laying off 450 employees as part of the deal.

    Zillow CEO Jeremy Wacksman called the partnership a "win-win," citing shared goals to digitize the real estate industry.

    Analysts suggest that an acquisition is possible, with Zillow's comprehensive platform and Redfin's agent-based model complementing each other well.

    A software-related angle could increase the chances of a deal happening, as both companies focus on growth areas like rentals and software.

    The partnership builds on existing collaborations between the two companies, including sharing new construction listings, 3D home tours, and interactive floor plans.