We reported that Google was in negotiations to acquire Yelp – apparently, negotiations have stalled. Previous assurances that the deal was all but done have dissolved, reports TechCrunch:
The two companies had agreed on a price – around $550 million plus earnouts – and were working through the final details of the acquisition.
Then something happened that made Yelp reconsider the deal. Over the weekend they notified Google that they were not going to sell, say multiple sources.
So what made the deal go sideways? We’re working on that. From the information we’ve gathered, there is currently no other suitor seriously looking at the company. For now Yelp intends to stay independent. We’re betting that someone – Apple, Microsoft, etc. – came to Yelp with an offer for a strategic deal that gave Stoppleman the confidence to say no to Google.
SearchEngine Land had a very good post earlier that pointed out just how good the Yelp buy could be for Google, if not for Yelpers:
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.
If this does happen many “Yelpers” (as they call themselves) will be unhappy, as many YouTube users were when Google acquired that site.
So, another failed acquisition for Google, but as usual they’ll just build their own version.