IPOs a Comin in 2010?

In the post “Yelp turned down Google” chatter the word is the company is headed for IPO city. Here’s Business Insider:

Why would Yelp’s investors allow Jeremy to turn down a $550 million deal when the company’s revenues are only in the tens of millions of dollars?

But our source tells us investors are the ones most opposed to selling.

They speculate that Microsoft inquired but also was rebuffed and that a deal with Google could still happen.

I could be way off, but I think running Yelp as a public company would be tough. But as a public company Yelp would change out of necessity I suppose.

The board would probably want a more Wall-Street-Friendly CEO and the company would need to find a strategy to grow revenues substantially and keep them growing; it would need to turn into a version of ReachLocal in essence.

The Yelp brand is very strong and they’ve built a terrific entity. But I probably would have taken the money.

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9 Responses to “IPOs a Comin in 2010?”

  1. How Was Google Planning To Leverage The Yelp Brand? Says:

    [...] acquire them.  Follow Greg Sterling’s updates on Google-Yelp developments here, here, here, here, and [...]

  2. David Mihm Says:

    I absolutely would have taken the money. Yelp as a publicly-traded company just does not have the same “coolness” factor you alluded to last week.

  3. Greg Sterling Says:

    It may not be entirely over, but I’m with you

  4. Andrew Shotland Says:

    I am not so sure. Let’s leave the coolness factor out of the discussion – Apple seems pretty cool and pretty public. Of the non-public consumer Web brands out there the only ones I can think of that are bigger than Yelp (in a brand awareness way) are Facebook & Twitter. Yelp’s business is a bit different than those services, but it’s potential to be the local Web brand is pretty huge. Lot’s of competition to be sure, but the guys running the show over there don’t appear to have modest aspirations.

    Then again maybe GOOG told them to buzz off.

  5. Greg Sterling Says:

    Andrew: Maybe “coolness” is ultimately not relevant but preserving the community and community engagement is.

  6. Andrew Shotland Says:

    Right, but I am not so sure that being public and preserving community are mutually exclusive.

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