Yelp shares surge 20% following sale rumours
Shares in crowd sourced reviews platform Yelp have surged more than 20 per cent on the stockmarket amidst rumours that potential buyers are being sought for the business.
Reports in the Wall Street Journal suggest that Yelp is seeking a buyer as it continues to struggle to attract sufficient numbers of visitors, with growth in new visitors steadily declining and having a knock-on impact on advertising sales – which are now falling.
This has spooked investors, hitting valuations for the business which is currently estimated to be worth as much as $3.4bn.
Yelp’s problems were compounded by a recent trading update in which it announced losses of $1.3m for the first quarter of 2015.
Advertising revenue from local retailers grew by 51 per cent to $98.6m but advertising from established brands fell 11 per cent.
Yelp has thus far refused to confirm or deny the reports.