According to TechCrunch, Google is attempting to acquire Yelp, a major review site founded in 2004 with an immense amount of traffic; ComScore attributes 9 million monthly worldwide visitors, but Yelp insists the numbers are closer to 25 million uniques each month. Tech Crunch says:
“Google and Yelp are in advanced acquisition negotiations, we’ve confirmed from multiple sources. And while the deal isn’t done, we’ve heard that it’s very likely to close. The price is supposedly at least $500 million… Yelp has whispered that 2009 revenues will be around $30 million and are expecting $50 million or so in 2010.”
A source says that the deal is 80% done, with just details to be hammered out before signing.
Google acquired AdMob for $750 million, and attempted to pick up LaLa; showing a distinct trend towards acquisition this year. According to Search Engine Land:
“Buying Yelp would be a different sort of acquisition for Google — a major one — because it’s not really a technology platform so much as a local brand, community and sales channel. If Google does buy Yelp, what exactly does it get?
It gets a local-social network with roughly 26 million users across the US, Canada and the UK. Yelp reportedly has 8.5 million reviews…The Yelp brand is stronger than Google in the local market in many respects … And this would be the closest Google has gotten to buying a “sales force” with a meaningful “on the ground” presence in the form of local editorial people in market and telephone salespeople.”
With local search becoming more and more important, Yelp could be the perfect vehicle for Google in terms of ad opportunities and increased traffic.
Tags: advertising, Google, local seach, Yelp