![]() ![]() But if you go much higher than that, it’s a different story. So if you put money into Foursquare at $600M two years ago, and its public comp is trading at 2.6x, you probably feel okay about that. At $25, where it opened today, it’s worth $1.6 billion.ĬEO Dennis Crowley might bristle at the Yelp comparison - “location layer for the Internet” sounds much more ambitious, and a good way to slay those haters - but until he can prove otherwise, most check-writers are going to view Foursquare as Yelp with badges. The bad news for Foursquare is that, as far as the market is concerned, Yelp seems to be worth something in the $1.5 billion range, and not much more. The good news is that the local reviews service has held up, price-wise, better than just about any other recent big-name Web IPO except for LinkedIn. But for Foursquare, the most important IPO of last year was Yelp. There was the Facebook IPO, of course, which let the air out of many consumer Internet companies’ valuations. But beyond its own issues, it is now dealing with another set of factors when it asks big investors for money: The public markets. You can debate how far the company has or hasn’t come since then. The last time Foursquare raised, back in June 2011, it was reportedly valued at $600 million. But whatever they are, for Yahoo, it's worth it.My hunch is that TechCrunch got this one right: Foursquare is going to get some more money soon, and the terms won’t be awful - not a down round, but not an exuberant one, either. ![]() Financial terms, of course, have not been reported. Yahoo decline to comment on the reported partnership. ![]() The person, who had knowledge of past Yahoo revenue share deals, guessed that the agreement could be lopsided to the tune of 70 percent Yelp, 30 percent Yahoo. publish chart save to portfolio create alert compare perf. Upgrade to FINVIZElite to get real-time quotes, intraday charts, and advanced charting tools. Like many of Yahoo's woes, it was mainly a legacy problem: The platform for the, say, Korean market would be different from the platform for the US market, because of the siloed way those platforms evolved separately from each other.Īsked to estimate what a possible revenue share could be, the former Yahoo employee posited that it would be heavily in favor of Yelp, since it comes into the situation with more power thanks to the company's elevated cachet, helped by licensing deals with Microsoft, mentioned above, and Apple, which uses its content in Apple Maps. Stock Price and Quote Thu JUN 01 5:12 AM NEW: Give your eyes a break with our new Dark and Light mode toggle. What's worse, the local-search technology itself had differed from global market to market, making it difficult to to execute on plans. He said that local search in the US market was barely keeping up, and that international efforts were largely ignored. The platform was just rotting," said a former member of Yahoo's local search team. "Yahoo needed to do this investment a long time ago. In any case, Yahoo's deal with Yelp was long overdue. And when she was at Google, she had tried to get the company to buy Yelp. ![]() Mayer has said before that user interface would be a distinguishing facet of Yahoo search, and Yelp results give the company a potent trove of content to draw from (not to mention try to monetize). That type of move has Mayer's fingerprints all over it. Finding a way to dress up and personalize those results even more - especially on mobile - would be a nice touch from Yahoo. For example, if the Yahoo deal is anything like a deal Yelp already has with Microsoft's Bing, if you search for a particular restaurant, you automatically have Yelp reviews and photos at the ready. So the really interesting bit of the Yahoo-Yelp deal is how it could fit into the future of a Yahoo search product with a renewed interest in structured search, with or without Microsoft. (A general example is searching for, say, "flight to London," and having a rate table or calendar pop up for trip dates.) The company is focusing on "structured search" to try to make search results sizzle - that is, results that usually come from brand and content partners, and are displayed with more pizzazz and information. ![]()
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