American Technology Research analyst Mark Mahaney argues that eBay's acquisition of Rent.com makes Homestore look cheap. "The deal highlights the potential under-valuation of Homestore.com -- HOMS has arguably the #2 rental housing Website, the leading home buying Website, and trades at under 2X 2004 revenue." In contrast, eBay paid over 10 times revenues for Rent.com.
If that's right, why didn't eBay buy Homestore.com? In fact, for that matter, why hasn't anyone bought Homestore.com? IACI is in pushing into the real estate/mortgage financing listings business, but also hasn't found Homestore.com attractive.