Investing.com – Yelp climbed on Thursday on a report that the online review site may be an acquisition target for daily deals company Groupon, according to The Wall Street Journal.
Groupon (NASDAQ:GRPN) is planning an acquisition in an effort to ease investor concerns about its performance, the Journal reported.
Yelp (NYSE:YELP) may just be the deal to deliver the much-needed boost. A tie-up of Yelp - an online site for consumers to search for and review local merchants such as restaurants - and Groupon would bring several services together in one place, such as deals, reviews and purchases.
Yelp shares were up 4.1% Thursday afternoon. Groupon was down 4.65%.
Groupon reported a 14% decline in revenue in its latest quarter, as traffic and customer counts continued to come under pressure.
As of Wednesday’s close, Yelp is actually more valuable at the moment, commanding a market capitalization of $2.46 billion to Groupon's $1.71 billion.
Groupon is down more than 10%, while Yelp is up 2.97% for the year so far.
Groupon went public at $20 in late 2011 and peaked at $31 that day. It hasn't exceeded its IPO price since then.
Yelp went public at $15 in early 2012 and was trading Thursday at about $36.