Review site Yelp (NYSE:YELP) primarily has been focused on the local merchant market in the U.S … until today.
Wall Street bid up Yelp stock Wednesday on news of an acquisition of European website Qype, as well as Yelp’s pre-announcement of third-quarter earnings.
Following a $50 million half-cash, half-stock deal for website Qype, Yelp has become a big player in Europe overnight. Qype was founded in Germany in 2006, and currently has a presence in 13 countries. It boasts 15 monthly million unique visitors, which will provide a nice boost to Yelp’s 78 million monthly uniques.
Yelp already had been building a presence in Europe, which included the launch of a London office. But the acquisition makes plenty of sense, and shows speed is a priority.
Also Wednesday, Yelp said third-quarter revenues are expected to come in at $36.4 million, above consensus estimates of $35.7 million. Yelp officially reports earnings Nov. 1.
YELP shares had gained about 11% in midday trading, and currently are up about 60% since the company’s March IPO.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.