180 degrees . . . apparently Google is not buying Yelp. Something changed over the weekend and Yelp rejected Google’s $500+ million offer.
As I wrote last week: When Money’s on the Table, Take It. While many Yelpers — and the rest of the local ecosystem — many not have liked the idea of a Google-Yelp combination, you don’t say “no” to this kind of money without a very concrete alternative plan. Everyone from the VC-investors to the company executives want an exit.
We haven’t heard the full story yet, but there’s a great deal more here going on than simply “walking away.” We’re probably talking about one of two alternative scenarios:
- Another buyer or major investor will be announced
- Yelp has decided to pursue an IPO (perhaps with a major investor to provide additional cash to get it to $100 million in revenues)
What do you think happened?