Have you heard the latest news about Yelp’s IPO plans? Well, there are some reports saying Yelp Inc., a company that deals with making online review for local businesses has hired Goldman Sachs and Citigroup with the purpose of leading its way to a $2 billion IPO from its $ 1.5 million IPO within the first quarter of 2012. If you still remember, Yelp Inc. has turned down a $ 500 million take-over offer made by Google Inc., back in 2010 and this seems to be a good decision as the company launched its plans of going public in April.
With this decision, more investors out there will be given the chance to give Yelp Inc. their own rating and this is also considered a great move at the moment. However, the company intends to reach a $ 2 billion value first before it finally become public and offers its shares to the market. Yelp Inc., was founded in 2004 and among the first companies who were able to combine three areas that are giving much growth among various consumer internet firms. These three areas are – social networking, local commerce, and mobile communications.
Yelp Inc. was considered an early leader when it comes to online reviews and has grown in the US by around 50 percent in the past one and half years. Basically, the company is earning profits in the same way as Google Inc. does and this may be the reason why Google has expressed its intention of taking over the said company, but Yelp has turned down their offer in early 2010.
Initially, Yelp Inc. has been so vocal about not considering an IPO for several years, but it seems that things are starting to change as it announces its intention of going public already. This might be because of the fact that recent trends suggest that there is great investor demands for leading internet companies such as Yelp Inc.
So what do you think of Yelp’s decision to go public? Is this a good decision or not? Well, let us just wait for more updates and see what will happen next.
You might also like
Tags: online review yelp, yelp, yelp inc. ipo, yelp ipo 2012, yelp online
