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Yelp may be fore sale.

Discussion in 'BlackHat Lounge' started by JustUs, May 8, 2015.

  1. JustUs

    JustUs Power Member

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    San Francisco ? Yelp may be heading for the auction block amid concerns about the online business review service's ability to compete against larger Internet companies for digital advertising.

    Investment bankers working with Yelp are courting potential suitors, according to a report Thursday in The Wall Street Journal, raising investors' hope that the San Francisco company will be sold. The Journal cited people it did not identify who are familiar with the matter and cautioned that Yelp Inc. still might not pursue a sale.

    Yelp declined to comment under its policy against responding to rumor or speculation.

    If Yelp solicits bids, Jefferies analyst Brian Pitz believes Google Inc. would be the most logical buyer. Other leading candidates include Yahoo Inc., Facebook Inc. and Priceline Group Inc., which could use Yelp to complement its recently acquired OpenTable service that books restaurant reservations.

    The prospect of a sale emerged a week after Yelp disappointed investors with a first-quarter report and a revenue forecast that lagged analysts' estimates. The letdown triggered a sell-off that hammered Yelp's already slumping stock, which lost more than half its value in eight months.
    http://www.wsj.com/articles/yelp-is-exploring-a-sale-1431018383
    http://www.mercurynews.com/business/ci_28069548/yelp-could-be-up-sale
    http://abcnews.go.com/Technology/wireStory/report-yelp-pondering-sale-stock-slumping-30880045
     
  2. asap1

    asap1 BANNED BANNED

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    Google is going to come and swoop this up like always.
     
    Last edited: May 8, 2015
  3. andzon

    andzon Regular Member

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    so what is the reason why they on sale?
     
  4. JustUs

    JustUs Power Member

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    As I read it, Yelp's hardball business blackmail is not producing the income that they would like, or that they need to pay investors.
     
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  5. MiLiTARYiV

    MiLiTARYiV Senior Member

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    Yep! I was just going to say this as well. I know, my business is on yelp and they tried to blackmail me
     
  6. DanTe_0101

    DanTe_0101 BANNED BANNED

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    because investors are pissed due to lower revenues...
     
  7. BreaknBrix

    BreaknBrix Power Member

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    Yelp hit their peak in early 2014. Plus they've been getting the shit beat out of them by Trip Advisor and Priceline.

    And yeh, they were playing hardball in mid 2014 but they were forced into that position. Trip Advisor dominated the more profitable travel industry. They had the money to run nonstop TV ads then decided to plunge head first into the restaurant industry. They went after Yelp tooth and nail.

    Yelp only had 1 way to respond. They lied to their stockholders about the quality of their reviews to boost profits so the CEO could sell off stock right before it plummeted. The CEO essentially shorted his own stock lol. This triggered a gaping chasm of distrust between Yelp and it's own stock holders... eventually leading to a lawsuit which would inevitably ruin the company.

    It may have seemed like a sleazy thing to do but it had to be done.

    They are the only review company in the world not to release any information about their algorithm.

    It was a giant fucking smoke screen / bubble that was created to inflate their stocks. Which actually worked really well early on. I think Stoppleman the CEO figured he could continue entering foreign markets and keep the bubble growing.

    Problem is, after years of not disclosing their algo it started to attract the attention of some very prestigious institutions... like Harvard. I know there were other institutions involved but they started running studies on Yelps algo and releasing information to stock holders. Books were written about it. For all we know Trip Advisor funded the studies. Stockholders started getting paranoid and selling off stocks. Then Yelp was forced to release their August 2014 report and lie which destroyed the company.

    There is no way that Stoppleman can rebuid his trust with stockholders. The worms are out the can so-to-speak and they have no other choice then to abort ship.

    -BB
     
    Last edited: May 8, 2015
  8. Trepanated

    Trepanated Supreme Member

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    Yelp is a public company so it's always for sale. It can be bought out any time.

    They are just looking for a buyout before the stock completely tanks and shareholders like Stoppelman get fucked (financially).

    Although the stock rallied, I can't see anyone seriously interested in buying them doing so at the current price. A sensible suitor would wait until the stock tanks and then buy them.