Boston, MA 06/16/2014 (wallstreetpr) – Yelp Inc (NYSE:YELP) and GrubHub Inc (NYSE:GRUB) rose on speculations that they are going to be the next targets for a potential takeover after OpenTable Inc (NASDAQ:OPEN)’s $2.6 million acquisition.
In February, WhatsApp was acquired by Facebook Inc (NASDAQ:FB) for $19 million. Post that, recently OpenTable was approached by Priceline Group Inc. (NASDAQ:PCLN) with a 53% premium deal which makes the buyout offer be priced at $103 per share for the startup. The online travel agency seeks to acquire the mobile application company that has over 15 million diners as its customers every month who use to reserve tables from their smartphones. Uber, the taxi- fetching service providing company, comes with another similar story. The tech startup in fact had the greatest surprise element as it is reportedly the first startup to lure a $17 billion acquisition offer.
With smartphones becoming increasing popular and more importantly useful in people’s everyday work, it is becoming common and everyday for big ventures to buy latest mobile- application developing companies for lofty figures. On these very speculations hares of Yelp Inc (NYSE:YELP), which provides possibilities for obtaining reviews of restaurants from smartphones, rose as much 15%. It is one of the many local services apps which are gaining increasing popularity and are becoming user favorites. Another such likely target, according to analysts is GrubHub, which offers smartphone users online food delivery services. Shares of the company surged 11% while Groupon Inc (NASDAQ:GRPN) reported a jump of 5% with speculations in the Mergers and Acquisitions market.
In this context, analysts did not shy away to name big players in the market as potential buyers of these growing companies. A New York based analyst with Macquarie Group Ltd. (ASX:MQG), Tom White, said that possible suitors for Yelp could include tech giants such as Google Inc (NASDAQ:GOOG) and Yahoo! Inc. (NASDAQ:YHOO).