What's that sound? The "market correction" or bubble pop or whatever you want to call it may be getting nearer as big companies are wondering if it's time to cash out including this week's news that Salesforce was fielding takeover offers. Now via the Wall Street Journal we hear that Yelp is doing the same. The company's stock price has kind of tanked recently, down to around $40 from a high in March 2014 of $97 as the company struggles with growth. And like Salesforce they've apparently hired an investment bank to assess offers, and they've been in touch with potential buyers, according to an unnamed source.
This would be pretty huge news for Yelp's SF workforce and their swanky new offices on New Montgomery that they just moved into a year ago. But the source says that the company may still decide against a sale and this is all very premature.
As the Business Times notes, the 11-year-old customer-review aggregator posted a disappointing $1.28 million loss for the first quarter of 2015, even though revenue was up, and sales forecasts for the rest of the year were lower than before, causing the stock to fall once more.
This might in part be due to the company's purchase of online delivery service Eat24 in February, for $134 million.
As the Journal points out, Yelp's decade worth of review content alone might be attractive to a number of buyers, given the time it takes to compile. But is this what it's come to? Newsweek and its reputation and 80 years of professionally written journalism are basically worth chump change, and a site full of random people writing "The dumplings were yum but the service was JUST OK" is worth $3.5 billion.
Previously: Salesforce For Sale? SF's Largest Tech Employer Works With Bankers To Field Takeover Offers
Uber Investor: The Bay Area Bubble Will Pop This Year, And More Than Tech Will Suffer
Shark Tank Billionaire Says 'This Tech Bubble is Worse Than The Tech Bubble of 2000.' Is He Right?