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Yelp acquistion compliments existing service

A report on Internet dealings and interactions in North Carolina and across the worldwide web for the week ending on July 19 shows what actions are trending for businesses as they attract consumers through social media. Yelp has purchased a reservation system called SeatMe, that uses websites or social media, as they continue their expansion into the restaurant industry. An iPad app also helps the restaurants organize seating. Other services include texts to restaurant patrons when a table is ready and documenting seating preferences. The popular restaurant review site will work with SeatMe as they are establishing a business presence in the reservation service industry. They previously used another reservation site.

The reported price was $2.2 million in cash, although stock shares increase the price to $12.7 million. Yelp plans to work with the SeatMe executives in order to help the transition go smoothly. They also hope to expand their services to dentist and beauty appointments. There is speculation that SeatMe had been looking for a buyer for some time.

When companies are trying to decide if they should purchase a business that competes with the services they offer, they might need to weigh their options. A business planning attorney tries to help them see the pros and cons of different business acquisitions.

With Yelp's acquisition of the reservation system, they hope to use the purchase to compliment their existing business. A strategic acquisition sometimes helps businesses expand their operations or move into a new market. A business and commercial attorney might help clients with drafting contracts and finalizing purchase dates.

Source: Yakima Herald, 'Yelp To Acquire Online Reservation Service SeatMe For Up To $12.7M," Greg Kumparak, July 18, 2013

Source: Entrepreneur, "Yelp Doubles Down on Restaurant Businesses With Acquisition of Reservation Service SeatMe", Brian Patrick, July 19, 2013

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Yelp acquistion compliments existing service | Britton Law, P.A.