December 28, 2009
The question remains whether Google (Nasdaq: GOOG ) will strike a deal with local review site Yelp. Google, the dominant, algorithm-based search engine is looking to grow in local and mobile search, and Yelp could be a perfect fit. The initial offer from Google was for more than $500 million, however, no deal has been signed and rumors are swirling that other synergistic companies such as Microsoft (Nasdaq: MSFT ) , AOL (NYSE: AOL ) , Yahoo! (Nasdaq: YHOO ) , and IAC (Nasdaq: IACI ) may be interested as well.
In fact, the company reportedly received an offer for 50% more than Google was willing to pay, but according to a recent article in The New York Times, Yelp may simply be going through some common negotiating tactics. Apparently the two companies remain in contact and discussions could resume.
Still, a potential deal leaves open speculation about the companies' compatibility. As Reuters reporter Robert Cyran adds: "Google's mobile search ambitions makes this a natural pairing. Yet Yelp's untidy human element may fit awkwardly with Google's clean algorithmic bent."
What do you think? Will the deal go through, and if so, is it a match made in heaven? Or will there be some awkward marital counseling sessions in the future? Let us know in the comments box below.