Yelp Surging On Sale Rumor
Shares of business review site Yelp Inc (NYSE: YELP) surged more than 12 percent on Thursday afternoon, after the Wall Street Journal reported sources familiar with the matter have said the company is exploring a sale.
Sources told WSJ that investment bankers are working in conjunction with the Internet company’s management, which has also been contacting potential buyers in the past few weeks.
“With a market capitalization of $2.9 billion, the company could fetch more than $3.5 billion in a sale,” WSJ said.
However, one of the sources clarified that “a deal isn’t imminent (…) and it’s possible Yelp will decide against a sale.”
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Shares of San Francisco-based Yelp were halted after the news broke, but not before spiking 8 percent. When trading resumed, the stock price rose to $43.
Shares traded recently at $43.25, up 13.1 percent.
The news is helping Yelp’s stock recuperate from the steep fall it suffered after the company announced poor first quarter earnings on April 29.
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