Yelp To Go Public For $2 Billion In Early 2012
Since turning down Google’s buy-out offer in 2010, Yelp has grown steadily and pressed ahead with its plan for an IPO. Those plans will crystallize in the first quarter of 2012 when Yelp will unveil its $1.5 to $2 billion IPO. The announcement of the IPO date was made earlier this week and Yelp has reportedly hired Goldman Sachs and Citigroup to handle the offering which is expected to be highly anticipated by the time the actual offering date is unveiled.
The prospectus for the IPO is expected to be delivered by the end of the year and many are tipping the IPO to be as successful as LinkedIn’s May 2011 IPO or Groupon’s recent IPO, both of which received a solid uptake for investors. Yelp may just be hoping to capitalize on Groupon’s IPO success which saw it recording a jump in share price at IPO only second to Google’s IPO of 2004.
In many respects too, Yelp will be hopeful that its traffic numbers doesn’t suffer too badly given the changes Google has been forced to make regarding its handling of reviews and ranking of those reviews. Yelp CEO Jeremy Stoppelman, was one of the many executives who took the stand at a recent inquiry into Google’s seeming monopoly of the search market.
At any rate, as successful IPO may just prove that the current boom in the tech sectors is not a fad or ‘bubble’ but a fundamentally sound movement in consumer confidence.
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