Google To Swallow Yelp For $500 Million?

Dec 18, 2009 • 8:17 am | comments (2) by twitter Google+ | Filed Under Google News & Finances

TechCrunch says that Google is in "advanced acquisition negotiations" with Yelp to acquire them for "at least" $500 million. Many sites are buzzing about these talks.

Arrington reported that Yelp earned $30 million in revenue this year and it is expected to jump to $50 in 2010. Yelp is a very popular local search site. It is arguably the best of its kind.

If Google buys them, you would have to think they would fold it into their Google Maps and Local services. They did that with FeedBurner and so many other brands they bought (i.e GrandCentral, etc). At the same, YouTube was bought by Google and because of its popularity, Google never moved it to Google Video.

I wonder how Google would handle Yelp. It would be a shame to see the Yelp brand go away.

Forum discussion at DigitalPoint Forums and WebmasterWorld.

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12/18/2009 05:03 pm

Google might want to look at how the acquisition of InsiderPages helped Citysearch or how the acquisition of Citysearch helped IAC... Buying business rating websites is a waste of money. Google already has the traffic and can easily replicate their useless rating system (four stars for everyone). For $500M, Google could build their own "Yelp" and have about $499M left over...

Scott Mc

12/22/2009 01:13 am

Well Stinky, here's another (different) way to look at it. According to some SEO keyword tools I use, Yelp has 25% more terms ranking on Pages 1 - 2 than TripAdvisor. Think about that - Yelp is a massive natural-search magnet, bigger than even TripAdvisor. So my guess is, as Google wants to own the hubs that drive natural search volumes, Yelp would be a good acquisition (albeit very overpriced, agreed). Google needs a local brand, it doesn't really have one, and Yelp makes a good fit. I seriously doubt Google would kill the Yelp brand. My bet is, that's half the reason they're going after Yelp instead of one of the many many look-a-like rating sites out there.

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