According to a TechCrunch report published last week, search engine giant Google was 80 per cent likely to buy out Yelp, a popular business review site located in the US for at least $550 million.
However, new reports suggest that the acquisition bid, if there even was one, has gone bad for Google as Jeremy Stoppleman, CEO of Yelp, reportedly turned down Google’s offer over the weekend.
Yelp is a local search and business review site that allows its members to search for local businesses in their area and lets them to post reviews about businesses listed on the site.
It has enjoyed immense popularity in San Francisco along with other metropolitan cities like Boston, Chicago, New York and Los Angeles and managed to make its way in the top 100 websites in the US.
A ComScore report had pegged the website’s monthly unique visitors to be around 9 million but the website has claimed that the actual number is closer to 25 million unique visitors.
TechCrunch, which reported the fall out, failed to state a reason as to why Yelp CEO Jeremy Stoppleman walked away from half a billion dollars as both the companies refrained from commenting to the media.
If the deal had gone through, it would have allowed Google to penetrate the local search and advertising market in which Yelp has had tremendous success.
But it might just be a matter of time before Google invade Yelp's turf. Google might turn its sight on other competitors to yelp including Citysearch, Insider Pages and many others. Our money though is on UK-based Qype although the search giant might decide to do it alone.
(LA Times Blog)