Maybe they read the Yelp review that says Google's headquarters is infested with skunks and raccoons.
Just a few days after reporting that Google was about 80 percent likely to be acquiring business reviews site Yelp for a totally sweet $500 million, TechCrunch has backtracked. Late Sunday, TechCrunch reported that Yelp CEO Jeremy Stoppelman personally walked away from the deal and that company representatives informed Google over the weekend they aren't selling.
That's odd. People seemed to think it was generally a good deal. TechCrunch isn't exactly sure what went wrong but speculates that Yelp may have gotten a better offer for a potential acquisition or strategic partnership that caused it to bail.
What could also have something to do with it: Google does a lot of things very, very well, but one thing it's never nailed is community. (Knol most certainly didn't kill Wikipedia, Orkut was big in Brazil but then faded in the wake of Facebook's growth, and YouTube's commenters seem to come from a very special place somewhere between the sixth and seventh circles of hell.) That's evident from looking at what Yelpers had to say about the potential deal last week. Proudly opinionated and devoted to the Yelp brand, many Yelpers were concerned that a Google buyout would degrade the site's sense of community--something that could, effectively, kill it.
Perhaps Yelp's execs thought the same and figured that strategic partnerships might be a better route for now.
MySpace started off as a hub for indie bands to connect with their fans. Now, with a new partnership with the IAC/InterActiveCorp-owned Citysearch, it's hoping to do the same for the likes of bars, clubs, and restaurants.
Called "MySpace Local," the new section on the News Corp.-owned MySpace will be rooted in existing listings from Citysearch (restricted to major U.S. cities) that are souped up with social features like the ones that you might see on a band or celebrity's MySpace page (photos, videos, comments, and the like). It's launching with just "restaurants," "bars," and "nightlife" categories, but will eventually expand--and it'll only be available to a select number of users this week before rolling out to the rest of MySpace's U.S. users.
"We're using the tools of new media to make the discovery as social and therefore as relevant as possible," said Jeff Berman, president of sales and marketing at MySpace, in a conference call on Tuesday. "The first thing you will see are ratings and reviews from your actual friends. When a reviewer is anonymous or unknown, it's hard to say whether you should care what they think."
Eventually, MySpace Local will highlight reviews from celebrities, "influencers," and power users with "street cred." There will also be new features like menus and possibly an online reservation tool.
This move will put MySpace in competition with fast-growing reviews site Yelp, which has been dealing with image and credibility issues recently but which has nevertheless been catching up to Citysearch in reach.
It'll also present more opportunities for local advertising. The social network has been courting small advertisers with a program called MyAds. But there will be big brand advertisers on MySpace Local, too, with Outback Steakhouse and Coors signing on for the launch.
Citysearch, which recently overhauled its site, also syndicates some of its content to AOL.
Berman said that research showed about 50 percent of active Citysearch users have MySpace profiles that they check at least once a month. "There is healthy overlap, but there is also a healthy new audience to be reached," he said.
This post was expanded at 10:54 a.m. PDT.
User-generated business reviews site Yelp has officially launched a U.K. edition, meaning that no business in England, Scotland, or Wales is safe any longer from the wrath of notoriously opinionated Yelpers.
Yelp had already gained a following in the U.K., the company said, because travelers bound for the U.S. use it to look up hotels, restaurants, bars, and the like. More than 100,000 of its visitors in the past month came from the U.K.
San Francisco-based Yelp, which accepts reviews of any business in the U.S. but also clusters businesses into subdirectories by city, quietly expanded to Canada several months ago. The company raised a fresh $15 million in funding early last year.
But the site's free-for-all, say-what-you-want nature may be under scrutiny: a Yelp reviewer was recently sued over a negative review of a chiropractor. If the lawsuit is successful, Yelp may have to crack down on particularly colorful reviews -- the content that has made it stand out from other business reviews sites.
Yelp, the business reviews site famed for a vociferous user base willing to be brutally honest about the quality of their local restaurants, bars, bookstores, dog groomers, adult gift shops, and what-have-you, has launched a new service for those business owners to interact with the site's users.
Called "Yelp for Business Owners," the section of the site lets business owners register for special Yelp accounts, which they then need to verify by phone. Once registered, they have access to some analytics (namely to see how many people have been viewing their business page), receive e-mail alerts when they have new reviews, update public data like their hours of operation or contact information, and message the users who have already reviewed their business.
While Yelp will not charge for business owner accounts, it's a way for the company to get more eyes on its ad-supported site.
The service will likely have its biggest splash in San Francisco, where the start-up is based and where "Yelper" has become a mild pejorative among some restaurant and cafe owners.
Elsewhere, it might not have quite the effect. I live in New York, where the food and hospitality industries seem to have a bigger problem with influential food bloggers rather than reviews sites, and the IAC-owned Citysearch is still the online directory of choice for many.
Yelp, the business reviews site that has gained a loyal following of opinionated young urbanites, as well as a couple of haters, announced on Wednesday that it has raked in a fresh $15 million in venture dough. The funding round, which closed Tuesday, comes from new investor DAG Ventures, as well as a number of existing investors.
Representatives of Yelp, which earns money through advertising revenue and sponsored listings, and has some much larger competitors, such as InterActiveCorp's Citysearch, say the current tally of reviews posted on the site is 2.3 million. Traffic is steadily climbing.
Google Analytics places Yelp's October 2007 traffic at 5 million unique visitors, then 6 million in December and 7 million in January 2008. Traffic for February, according to the same metrics, is set to pass 8 million.
Server space to handle higher traffic isn't Yelp's only reason for needing new funding: the company is opening an office in downtown New York, the company's first outside San Francisco. The new digs, in the West Village neighborhood, will open on March 3. And Manhattan real estate ain't cheap, especially in that part of town.
Outside.in, a New York-based site that aggregates town-specific news, blog posts, and business listings into a sort of Local News 2.0, formally launched a discussion forum feature on Wednesday.
Thie move puts Outside.in more squarely in the league of Yelp and Craigslist, which supplement their respective business reviews and classifieds listings with lively local message boards.
Obviously, discussion boards don't mean anything if there isn't a solid base of users willing to contribute to them regularly. But there certainly are more than a few people who like to rant about their local school board, sidewalks crowded with strollers, and long lines at the post office, and many neighborhoods don't really have online hubs for town chatter yet.
There's a cool twist to Outside.in's message boards too. You can "attach" a location to your posts--if you're writing about a certain bar, for example, Outside.in will add a link to the listing if it detects the name of a local business. (You get to preview it first.)
Meanwhile, the "hyperlocal" niche of the Web continues to get more crowded, with the launch of EveryBlock last week.
What's currently shaking up on Outside.in's message boards for my home island of Manhattan? Finding the coolest bar in the Lower East Side neighborhood or the best place to go for happy hour around Union Square. It's good to see that users' priorities are in the right place.
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