HomeStore to Buy Rival Web Realty Service

HomeStore.com Inc. said it will acquire online home-buying service Homebuyer’s Fair from Central Newspapers Inc. for about $85 million in the latest move to establish itself as the predominant real estate service on the Web.

With the deal, Thousand Oaks-based HomeStore said it would operate three of the five most-visited real estate Web sites.

Homebuyer’s Fair provides Internet services and information for people who are moving and corporations that are relocating employees. Its two Web sites will be added to the HomeStore family of real estate services, which allow users to search home and apartment rental listings as well as for other services related to moving.

For newly public HomeStore, the purchase represents another step in its strategy for countering new players in the Internet real estate business, including Cendant Corp., which recently said it would launch a Web site much like the Home-Store service.

It also strengthens HomeStore’s position against Microsoft Corp.’s HomeAdvisor Web site, where users can find homes for sale and obtain information on financing.

In September, franchising company Cendant said it would launch a real estate service called CompleteHome.com that will draw on its RentNet online apartment guide as a business model.

Industry analysts say Cendant’s move does not represent a big threat to HomeStore’s business, noting that HomeStore has a three-year head start.

The Homebuyer’s Fair deal is expected to close within 60 days.

Central Newspapers, whose properties include the Arizona Republic, said the sale would allow it to focus on Internet holdings that are more in line with its core media operations.

HomeStore shares fell $2.25 to close at $45.88 on Nasdaq.