Yelp Inc. agreed to buy online food-ordering service Eat24 for $134 million in cash and stock, the consumer-review website’s latest move to expand its reach. Eat24, based in San Bruno, Calif., serves about 20,000 restaurants across the nation. It is part of a growing number of food-ordering services, a category that includes Chicago-based GrubHub Inc., which also owns Seamless.
Yelp Chief Executive Jeremy Stoppelman said it was important to offer consumers services that let them interact directly with food-ordering websites. Yelp has been trying to expand its reach, launching websites in Chile and Hong Kong as well as a mobile service that allows users to translate reviews. During the fourth quarter, Yelp bought European review sites Restaurant-Kritik and Cityvox. The Eat24 deal consists of about $75 million in cash, less certain transaction expenses, and the rest in stock.
Yelp also boosted its first-quarter and full-year revenue outlook, sending shares up 5.9% on Tuesday. It now expects first-quarter revenue of $118.5 million to $120.5 million, up from $114 million to $116 million. For the full year, Yelp estimates revenue of $574 million to $579 million, up from a previous estimate of $538 million to $543 million.
Source: Wall Street Journal