Rumour Mill : Google to buy UK-based Yell.com

A quiet start of the year and some degree of self-fulfilling prophecy have caused the markets to "buzz" over the potential acquisition of Yell.com by Google with £5 per share offer.

While some, like John Battelle, think that Google does not need to invest in Yellow pages because they are becoming increasingly irrelevant, others like Jemima Kiss, point to the potential of such an acquisition.

By bringing together a strong brand like Yell with its Mapping services, Google could potentially make its local listings even more pertinent and therefore attract a bigger audience.

Yell would also allow Google to target the UK SME/Corporate sector more effectively.

At USD 5 bn though, Yell might be a bit too expensive for Google. That said, Yell, unlike Google other massive acquisition, Youtube, is all about Quality, not quantity.

It is the 124th most visited website in the UK but managed to generate more than USD 4 bn worth of revenue in 2007 with profits of nearly USD 500m through its online and print ventures.