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  "docSlug": "de028a1085e6",
  "documentTitle": "Zillow Group, Inc. (Z)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-03-05 00:00:00",
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  "pageNumber": 24,
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  "notes": "The slide uses red boxes to highlight the 2023E projections for comparison against actuals mentioned in the text.",
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      "kind": "callout",
      "text": "Spruce Point believes that Zillow embodies the concept of financial disappointment. One must look no further than its $3.5 billion stock acquisition of Trulia (NYSE: TRLA) completed in February 2015. The deal was highly promoted by management and generated $1.7 billion of goodwill based on expected synergies. A review of financial projections from the proxy statement indicates that by 2023, Trulia and Zillow were expected to generate $5.6 billion of revenue and >$3.0 billion of Adj. EBITDA. In reality, Zillow just reported $1.9 billion and $391 million of revenue and Adj. EBITDA in FY 2023. Given that the Trulia acquisition failed miserably to produce the synergies or financial results illustrated to investors, why has Zillow never impaired its goodwill?",
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    {
      "bbox": null,
      "kind": "callout",
      "text": "Given that the Trulia acquisition failed miserably to produce the synergies or financial results illustrated to investors, why has Zillow never impaired its goodwill?",
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      "toolName": "Visual emphasis",
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      "text": "Adjusted EBITDA: $391 million",
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      "kind": "source-note",
      "text": "Source: Zillow/Trulia deal announcement and proxy statement, Nov 2014",
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      "kind": "table",
      "text": "Projections From Trulia / Zillow Combination tables",
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      "kind": "title",
      "text": "Zillow Has Been A Wild Disappointment From The Very Beginning With Its Trulia Acquisition",
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      "evidence": "Contrasting management's historical projections with actual results to imply financial misrepresentation.",
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      "evidence": "The document presents evidence to support Spruce Point's claims, including data on Zillow's declining site traffic and revenue per visit.",
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