Today, Yelp announced that they picked up food delivery service Eat24 for a nice sum of $134 million. Wish I had something Yelp would buy for that much cash. They made the deal official on their blog earlier today. "Eat24 joined the Yelp Platform as a transaction partner in 2013 and since then we've been looking at them, well, the way they look at bacon. We couldn't resist any longer and I'm excited to announce that we have officially brought them into the Yelp family!"
So we don't have any word on whether Eat24 will remain it's own product, or get rolled into Yelp, but it seems like it'll remain separate, at least for now. According to The Wall Street Journal, the deal is $75 million in cash and the remainder of the $134 million will be in stock. The deal was approved by the board of directors of Yelp and Eat24 just last night, February 9th. The purchase price will be included in Yelp's Q1 2015 financial earnings.
"We're excited to join the Yelp team to deliver an even better consumer experience inside this top destination for finding local businesses," said Nadav Sharon, Eat24's co-founder and chief executive officer. "Yelp has an impressive ability to connect its users directly with businesses. This is an incredible opportunity to further connect with Yelp's highly engaged users and to expand our reach to even more local businesses on its platform."
With this transaction, Yelp is increasing their outlook for 2015, "For the first quarter 2015, Yelp is increasing its revenue outlook and expects net revenue to be in the range of $118.5 million to $120.5 million. Adjusted EBITDA is still expected to be in the range of $19 million to $21 million."
So Yelp buys Eat24, as always I'm sure a bunch of people are pissed. So how many of our readers are upset that Yelp has bought Eat24? Let us know in the comments down below.