Over the weekend reports have been streaming in that Google are in discussions to buy Yelp, possibly for as much as $500m, in order to advance their local listing services.
From its base in San Francisco Yelp has grown into one of the biggest user generated review sites in the USA with over 8million reviews offering users opinions on restaurants, shops and businesses across the country. Over the last year however Yelp has hit slightly tougher times; expansion into new markets, such as the United Kingdom, have proven far less successful than was hoped, and the recession has meant that advertising revenue has also taken a hit.
Google appears to be taking the opportunity to target the slightly weakened Yelp with a reported offer of $500m. By integrating with Yelp Google would be able to dramatically improve on its local business and listing services, and no doubt the integration with Google would help Yelp to take off in some of the counties that it has been struggling to make a mark on up until now.
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