SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced that it has completed the sale of Eat24, its online food ordering business, to Grubhub Inc. (NYSE: GRUB), the nation's leading online and mobile food ordering company. Yelp previously announced its plan to sell Eat24 as part of a strategic partnership with Grubhub to integrate online ordering from all Grubhub restaurants onto the Yelp local goods and services platform. The partnership with Grubhub became effective upon the closing of the sale, and is expected to increase the number of order-enabled restaurants on Yelp to approximately 75,000 when fully implemented.
“With the sale of Eat24 now complete, we are excited to begin our long-term partnership with Grubhub,” said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. “This partnership will enhance our consumer product offering in Yelp’s highest trafficked category by adding tens of thousands of additional restaurants for online ordering and delivery.”
Yelp received approximately $251.7 million in cash at closing, which remains subject to customary post-closing adjustments, and an additional $28.8 million in cash will be held in escrow for an 18-month period after closing to secure Grubhub’s rights of indemnification. Yelp will update its full year 2017 financial outlook, reflecting the expected financial impact of the sale of Eat24 and Grubhub partnership, upon reporting the third quarter 2017 financial results.
About Yelp Inc.
Yelp Inc. (http://www.yelp.com) connects people with great local businesses. Yelp was founded in San Francisco in July 2004. Since then, Yelp has taken root in major metros in more than 30 countries. Approximately 28 million unique devices1 accessed Yelp via the Yelp app, approximately 83 million unique visitors visited Yelp via desktop computer2 and approximately 74 million unique visitors visited Yelp via mobile website3 on a monthly average basis during the second quarter of 2017. By the end of the same quarter, Yelpers had written approximately 135 million rich, local reviews, making Yelp the leading local guide for real word-of-mouth on everything from boutiques and mechanics to restaurants and dentists.
1 Calculated as the number of unique devices accessing the app on a monthly average basis over a given three-month period, according to internal Yelp logs.
2 Calculated as the number of “users,” as measured by Google Analytics, accessing Yelp via the desktop website on a monthly average basis over a given three-month period. Adjusted to remove certain robot traffic, as described in Yelp’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q.
3 Calculated as the number of “users,” as measured by Google Analytics, accessing Yelp via the mobile website on a monthly average basis over a given three-month period.
This press release contains forward-looking statements relating to the future performance of Yelp and its consolidated subsidiaries that are based on Yelp’s current expectations, forecasts and assumptions, and involve risks and uncertainties. These statements include, but are not limited to: statements regarding the strategic partnership with Grubhub, including Yelp’s expectations, beliefs and plans regarding the partnership and its impact on Yelp’s business; Yelp’s ability to capitalize on the partnership and deliver value to consumers; and Yelp’s expected returns on the sale of Eat24. Yelp’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to, the matters included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Yelp’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q at http://www.yelp-ir.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to Yelp on the date hereof. Yelp assumes no obligation to update such statements.