Yelp Turn-Down the Google Deal: Half a Billion Dollar Mistake?

Posted on 21 December 2009 by author

‘Yelp Don’t Need Help’

google monopoly

The theme of this article is simple – If you have been following the monopoly game being played by Google acquiring one company after another then its no surprise to see that Big G is planning to buy another company again, in this case Yelp. It has been said that both of the company already had a ‘staid’ agreement on how would be the proper arrangement once the acquisition of Yelp has been finalized. All in all for a price of 500 Million USD or more – Peculiarly, Yelp still ‘back-out’ from the agreement?

So what is Yelp again?

yelp consumers

Yelp is a humungous review company website in USA started on 2004 – Yelp is the fun and easy way to find, review and talk about what’s great – and not so great – in your area. Since then Yelp’s growth had skyrocketed, now having an estimated 25 million unique visitors per month.

Yelp has whispered that 2009 revenues will be around $30 million and are expecting $50 million or so in 2010

According to TC, the reviewing company manage to obtain a $200 million pre-money valuation on 2008, ‘we’ve heard’. They’ve raised a total of $31 million over four venture rounds.

At this angle, you can see that the 500 Million dollar offer of Google is already generous, However Yelp still declined the deal. (The question remains, Why?)

It has been said that Yelp’s gargantuan database will play a significant role on Google’s plan of having a directory of local businesses with its Place Pages, which can be accessed neatly using Google Maps and local search – A genius idea indeed, there’s nothing more easier for a consumer than to browse a selected shop on any part of USA and conveniently see the factual-review of that particular stall without ever needing to look for a forum, a bogus website etc. only to find if that certain shop is a good deal or not. Obviously, Yelp already had this on their database and Google is aiming for ‘it’.

Seeing the half a billion dollar offer of Big G being turned down was quite a turn-off in my opinion, but I guess Yelp financial accountants had a better explanation for that. An explanation that they wouldn’t disclose until further notice.

On the contrary it might not be just the ‘money-issue’ there could be other opposing factors (investors) involve on the end of Yelp that forbids Google for the acquisition.

yelp spoof

Hopefully those ‘other factors’ is enough for turning down the gift-horse presented by BIG G. We don’t want to see another epic-fail mistake ala friendster-style, don’t we?

We will keep you guys posted.


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One Comment

  1. Chelsea (Reply) Posted on December 14th, 2011 at 9:44 am

    Yelp is beyond SCUM – they extort small business that don’t buy into their BS Yelp club and filter their good reviews while keeping the bad ones. I know this from a close friend with a small cafe, as well as just looking on yelp and seeing the odd pattern in filtering reviews (algorithm = BS).

    I was made even more aware of what BS this filter was when I came across
    Lifebook Acting Class (FYI I am not an actress, there was a Groupon, I was curious to see it’s Yelp page) and noticed that they had 5 reviews and 41 (FORTY-ONE) filtered reviews. The ones that were filtered didn’t even make sense. Yelp is a scam, a fraud, and extortion business. Eff-you-see-kay you Yelp!


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