Google is in “advanced” talks to buy Yelp, Michael Arrington at TechCrunch reports. One source tells him the deal is 80% likely to close.
Yelp’s revenues are in the $30 million range this year, going to $50 million next year, according to Arrington. When it raised money in February 2008, it was reportedly at a $200 million valuation.
What might Google want with Yelp?
If Google wants to tap local ad markets through mobile, Yelp provides a nice entry point with its community built around dining, nightlife and shopping.
Jeremy Stoppelman, Yelp’s CEO, told us earlier this month it had 1 million iPhone app downloads and was preparing to release an Android app.