After a short courtship between Google and Yelp, a site aiding users to find local businesses by municipality, both parties have walked away from the bargaining table. The deal, reputedly worth in between $500 and $750 million, has been abandoned, though when it comes to identifying which powerhouse balked at the takeover, conflicting reports have emerged.
Articles from TechCrunch and the New York Times speculate whether Yelp may have received a counteroffer from another heavy hitter - possibly Microsoft, Yahoo or AOL - prompting the recommendations site to decline the nine-figure sum. However, a source exclusive to the NYT, and privy to talks between the companies, said Google had doubts over the transparency of the local listings website.
The source further indicated that Google didn't want the bargain affected by a media frenzy. Word first came of the proposed acquisition December 17, and was quickly followed by the musings of various websites over the possible implications of the deal.
Though negotiations between the two internet doyennes have arrested, some remain convinced this may be a ploy to reach a better conclusion.
Speaking to the NYT, Anthony Alfonso, president of Trenwith Valuation, who often advise on acquisitions, said: "I have a hard time believing that a board of directors of a venture-backed company is going to walk away from $750 million. I'm fairly certain something will get done."
As no counteroffer has officially been announced to the media, it is assumed that Yelp will opt to remain independent, or wait for Google to pursue them further.
The acquisition of Yelp, founded in 2004 and purporting to attract over 26 million visitors monthly, could have served to beef up Google's local search functions and added another tasty ingredient to the full online menu Google is so keenly pursuing.
