Caledonia buys huge TrueCar stake

01 May 2017

Caledonia (Private) Investments Ltd., the Australia-based global investment management company that holds (or held) large stakes in a number of major classified advertising sites, including Zillow, Trulia, Rightmove and others, has disclosed a holding of almost 10 percent of the shares of TrueCar, the Santa Monica, Calif.-based automotive website headed by Chip Perry.

The purchase of 8.6 million shares of TrueCar by Caledonia was disclosed in a filing with the U.S. Securities and Exchange Commission on Monday. The company, listed as TRUE on Nasdaq, has 89.1 million shares outstanding, with a market capitalization of almost $1.6 billion. The Caledonia stake is 9.93 percent. The company said it was a passive investment and it did not anticipate taking an active role in or any change in the management structure of TrueCar.

Caledonia was by far the largest holder of shares in Zillow Group as of its last filing on Dec. 31, when it owned 25.6 million shares — or almost 21 percent of the company. At the time of the filing, the stake was worth $926 million. Zillow Group was trading at $36.47 then; it’s gone up 9.5 percent in the last four months and closed Monday at $39.92.

At one time, Caledonia also was the largest holder in shares of Trulia, and market sources have indicated it played a large behind-the-scenes role in orchestrating the merger of Zillow (pre-merger) and Trulia. Caledonia also held a large stake in Rightmove (LSE: RMV); it is not currently shown as one of the leading holders in Rightmove.

Neither company could be reached immediately for comment.

TrueCar stock has almost tripled in value during the last year, from a low of $5.99 on May 6 last year to $17.67 on Monday. Its 52-week low was $5.71 and it reached a high of $17.86. It is scheduled to report its Q1 earnings on May 9.

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Peter M. Zollman

Peter M. Zollman brings more than 35 years of media experience to his role as founding principal of the AIM Group / Classified Intelligence Report. He has worked with a wide range of media companies, dot-coms, technology providers and start-ups to develop and expand successful interactive-media services. He is based in Altamonte Springs, Fla., near Orlando.