By Angela Chen
Yelp Inc. on Tuesday 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.
San Bruno, Calif.-based Eat24 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 is 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 4% in early trading.
Yelp 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 increased its revenue outlook to $574
million to $579 million, up from $538 million to $543 million.
Write to Angela Chen at angela.chen@dowjones.com
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