Shares of Yelp rose for the second day on talk that the consumer review website is putting itself up for sale. Bobbi Rebell reports.
Yelp making a lot of noise on talk of a possible sale. After tacking on 23 percent Thursday, shares of the consumer review website moved up again on Friday. The march higher started by a Wall Street Journal story, saying the company had put itself up for sale, possibly aiming to get more than $3.5 billion. Manhattan Venture Partners Max Wolff. SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "They have tons of traffic. More than 150 million uniques. They are a lifestyle product. They have a high level of engagement. They have a particularly high level of engagement among affluent urban folks who are a demographic. Young urban affluent is a demographic that folks are interested in." Names being talked about as potential buyers include Facebook, Yahoo, Microsoft, Apple and even Google, which actually tried to buy Yelp before it went public in 2012. But subscriber growth has been slowing. Yelp has been trying to expand to other markets and diversify into areas, like restaurant bookings, event management, and payments. And then there is the issue of profits... there are none. SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "The downside for the buyer is the company is not making money. It has historically struggled to make money. Monetizing user generated content is very difficult. We've seen even Twitter struggle with that, although Twitter and Facebook are probably the most successful at doing that, maybe Pinterst increasingly, and Snapchat trying to, but, yeah, it's a tough business " While the stock may seem lofty compared to earlier in the week, it is still less than half its peak level.