M&A Rumor Mill: Does Priceline Acquiring Yelp Make Sense?
As earnings season begins, the market has seen a recent uptick in M&A chatter. Among the names being mentioned for a takeover include local business review site Yelp Inc (NYSE: YELP). To help break down the validity of the rumor, Benzinga reached out to Benchmark Equity analyst Daniel Kurnos.
Kurnos said a combination of Priceline Group Inc (NASDAQ: PCLN) and Yelp has been "talked about a million times in the past."
Going further on the potential of a takeover, Kurnos thinks a combination of Yelp and GrubHub Inc. (NYSE: GRUB) would make the most sense. However, he noted that Yelp would be a nice addition to Priceline's OpenTable, which is trying to be a one-stop-shop for local travel.
On November 12, Kurnos joined Benzinga's PreMarket Prep show and highlighted IAC's bid for Angie's List. In the interview, he mentioned that Yelp would "certainly be an interesting stock to pay attention to here."
Commenting that the company has "multiple angles," particularly in travel and local, that would put the company "on the radar for some of the larger players." To listen to Kurnos breakdown, click the highlighted link and scroll to the 1:35 mark on the recording.
Shares of Yelp saw an initial spike from $22.03 to $22.87, before returning to pre-chatter levels. The stock is trading up 1.8 percent on the day at $22.05.
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