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Google To Buy Yelp For $500 Million?

Google, the California based search engine giant, is currently in middle of talks with Yelp, the highly popular local review and search engine, to acquire the website, which reportedly gets more than 25 million unique visitors every month.

TechCrunch (opens in new tab) has reported that Google is in an advanced stage of negotiations to acquire Yelp for at least $500 million in an attempt to become a major force in the local search marketplace.

The search giant has taken into account the fact that Yelp has a dedicated user base across metropolitan locations in USA and a huge database of reviews on local businesses.

Yelp, which was founded in 2004 by Jeremy Stoppelman and Russel Simmons, allows its users to post reviews of businesses in and around their local area, something that Google has been actively trying to replicate on a global scale with its own Google Maps and Places.

The company had announced earlier that its revenue for 2009 will be around $30 million and it had also predicted $50 million revenue for 2010.

It appears that Google is acquiring companies that will ensure its smooth entry in the local market place segment as the company has recently taken over AdMob, a local advertising platform for iPhones for $750 million.

Our Comments

For Yelp, that would be the exit strategy that they were looking for. Either take the money and run or wait till Google starts to squeeze you completely out of the market and then break down and cry. The website would be having issues trying to expand outside the US with Qype, Yahoo and many others having already cornered the market.

Related Links

Google said talking buyout with Yelp (opens in new tab)

(CNET)

Google Renews Talks to Buy Yelp (opens in new tab)

(NY Tmes)

Google Reportedly in Talks to Buy Yelp (opens in new tab)

(The Street)

Google In Talks To Buy Yelp For $500 Million, Says TechCrunch (opens in new tab)

(Businesses Insider)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.