Snubs Google’s Half-Billion-Dollar Acquisition

December 21st, 2009 at 12:00 am

Yelp snubs Google

TechCrunch reported that Jeremy Stoppleman, the chief executive officer for localized reviews website, rejected Google’s acquisition offer that is said to be worth about US$550 million.

Yelp was founded in 2004 as a site where users post reviews on local businesses.  The website has an estimated 9 million monthly unique visitors, according to Comscore, although the people in Yelp claim they have more than 25 million monthly users.

Meanwhile, Google planned on buying Yelp as its way of building out its directory of local businesses in Place Pages, which is accessed through Google Maps and local search.

The negotiation, which is said to be on its later stages and only needed to be signed to finalize, apparently broke down even if both parties have agreed on the $550 million-price, which includes earnouts.  The reasons behind the rejection, or what other tech blogs referred as reconsideration, are still sketchy.  TechCrunch speculates that another company may have come to Yelp with a strategic deal that is hard to refuse.  We will find out in the coming weeks if this speculation is true.

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