Google was looking to turn the corner on owning the local search market. Google currently has a good piece of local search real estate with its own Google local which showcases thousands of local businesses. For instance, if you typed in “nyc computer repairs,” you’ll find several nyc tech companies. Or you can get very specific, and type computer repairs 10016, and you’ll find IT companies in that specific zip code.
With Yelp, Google could have bought out another website that specializes in local search results. Many argue that Yelp hastaken over the local business search war over Citysearch. Google offered $500 million, but Yelp thought this amount was too low especially since they already received an anonymous bid for $750 million. Well, this so-called anonymous bid might be a bluff-bargaining tool to lift Google’s offer.
Why did Yelp turn down such a huge offer from Google?
- Yelp recently overtook Citysearch for the amount of website visitors. There are more good things to come.
- Yelp might be waiting for Microsoft, AOL, and Yahoo to step up to the table for better synergy.
- Google might just want to take over Yelp’s customer base, and chew Yelp up in little pieces.
- Yelp’s niche is all local whereas Google’s broad search engine might not be specialized enough
- Maybe Yelp is looking to take its company public with an IPO. Then, it can still keep majority ownership and sell off some of its company.
Overall, we think Yelp is crazy to turn down Google. After all, Google local pretty much has the same customer base asYelp, if not more. All Google is looking to do is take out the little guy here while it trucks on. Yelp should get out while it can and make some serious cash. The deal might still go through, but as for now, the deal is off the table.
