Yelp needs help, and buyout may be the answer
By Arathy S Nair and Lehar Maan
(Reuters) - Selling itself could be one of the few options left for Yelp Inc YELP.N, which is struggling to win advertising dollars in an increasingly crowded market that already includes Google Inc GOOGL.O, TripAdvisor Inc TRIP.O and GrubHub Inc GRUB.N.
Yelp, owner of consumer review website Yelp.com, reported a second-quarter loss on Tuesday and forecast revenue for the current quarter that was far below expectations.
The news pushed down the company's shares almost 30 percent on Wednesday to their lowest in more than two years, wiping out more than $735 million in market value.
As of Tuesday's close, Yelp – now valued at about $1.8 billion – had already lost 39 percent of its value this year.
Unless Yelp can come up with a strategy to boost its financial performance, the San Francisco-based company should consider selling itself, several analysts said.
Yelp put itself up for sale in May but then decided not to proceed, Bloomberg reported this month.
Yelp declined to comment. Yahoo, Amazon and Google did not respond to request for comment, while Priceline said it did not comment on acquisition rumors. Continued...