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Google Buying Zagat
Posted By Sonya Donaldson On September 9, 2011 @ 11:25 am In Blogging and Social Media,E-Commerce,Internet and Online Business,Location-based services,Online Marketing,Search Engine Optimization,Web Analytics | No Comments
If your first response to the news that Google was acquiring Zagat was, “Huh?” You’re not alone. And although it might seem that the two make strange bedfellows, analysts say the deal (details of which were not disclosed) for the restaurant-rating guide makes sense. The purchase price is estimated to be in the $100 million to $200 million range.
With the purchase of Zagat, Google gets to move into the space with an established brand—albeit one behind a pay wall. It’s a space Google has been trying to break into for several years now: two years ago it attempted, unsuccessfully, to purchase Yelp for $500 million, then introduced Places last year. Third time might just be the charm.
Analysts note that the local online advertising market is currently a $140 billion market. Google will have plenty of opportunities: roughly 20 percent of searches are for local goods and services—and the number is higher on mobile phones.
Read more at The New York Times .
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 The New York Times: http://dealbook.nytimes.com/2011/09/08/google-to-buy-zagat/
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