plattetude Posted September 8, 2011 Share Posted September 8, 2011 Google has agreed to buy Zagat, the guide to restaurants around the country, in an effort by the search giant to expand its local offerings. Terms of the transaction, including price, were not disclosed. Tim and Nina Zagat, the husband-and-wife team behind the company, said they planned to remain involved in the business as co-chairs. Clicky Interesting. Christopher Quote Link to post Share on other sites
changeup Posted September 8, 2011 Share Posted September 8, 2011 Google has agreed to buy Zagat, the guide to restaurants around the country, in an effort by the search giant to expand its local offerings. Terms of the transaction, including price, were not disclosed. Tim and Nina Zagat, the husband-and-wife team behind the company, said they planned to remain involved in the business as co-chairs. Clicky Interesting. Christopher Here's 2% of what you were once offered and turned down, you have 5 minutes to think it over. Quote Link to post Share on other sites
Wilfrid Posted September 8, 2011 Share Posted September 8, 2011 We don't know the price, do we? Google isn't commenting. Quote Link to post Share on other sites
splinky Posted September 8, 2011 Share Posted September 8, 2011 i haven't looked at a zagat guide in almost a decade. maybe google can make it useful again. Quote Link to post Share on other sites
Wilfrid Posted September 8, 2011 Share Posted September 8, 2011 I guess Google will push reviews under users' noses on search and maps. "In-the-know" tips about how to spend "the time of your life" in some of the world's "super destination" cities. Quote Link to post Share on other sites
Suzanne F Posted September 8, 2011 Share Posted September 8, 2011 I don't get it. The only thing Zagat has been good for is finding addresses, and Google can already supply that information. I wish AaronT would come back and explain to us how Google "thinks." Quote Link to post Share on other sites
Wilfrid Posted September 8, 2011 Share Posted September 8, 2011 Google thinks: 1. It's cheap. 2. It shores up Search and Google Maps by adding some branded content (context: people navigating the web more and more via social platform links rather than Search). 3. Maybe it can be tied in with Google Deals or something else down the road. 4. Anyway, it looks social. And it's cheap. Quote Link to post Share on other sites
Chambolle Posted September 8, 2011 Share Posted September 8, 2011 OpenTable's stock was down over 8% today (it was down as much as 13% earlier in the day). The stock has now been cut in half from their insane nosebleed, capillary-bursting peak in April of this year. The stock is still very very expensive even though it almost touched its 52-week low today. Interestingly, Jeff Jordan, OPEN's CEO left earlier this year in May. Trust me on this: young-ish CEOs rarely voluntarily leave a high-flying, public company when the runway for the next 12 months looks clear. And he left of his own volition. He knew the stock price was unsupportable. A company's stock in free fall does NOT necessarily mean that a company has competitive issues. A stock in free fall can simply mean that the market cap was ridiculous and required correction, while the company is still dominant vis-a-vis its competitors. I believe that is the case here at the moment. But things will change over the next 18 months. This Google acquisition is the first tremor of earthquake-like changes in OpenTable's marketplace and the approach to using digital technology to optimize how restaurants interact with and market to their customers. The tsunami alarms just went off in OpenTable's R&D operation. They are now scared shitless and wondering from which direction that tidal wave of googley innovation is going to hit them. You heard it here first. And it's a good day for restaurant owners who are not happy with OpenTable. Stay tuned. It's a bit more than 1 year since my prediction that early innovator OpenTable has a very good chance of being out-innovated in the next five years. Getting nervous yet, Lex? Quote Link to post Share on other sites
Wilfrid Posted September 8, 2011 Share Posted September 8, 2011 Open Table shares a problem with GroupOn. It can't patent its idea. Anyone think Google can't engineer a reservations database? Without looking back, I think I agreed that a start-up would face difficulty taking a big market share from OT. Google is a whole different kettle of fish. Hope I said that, anyway. Quote Link to post Share on other sites
Anthony Bonner Posted September 8, 2011 Share Posted September 8, 2011 I really thought it would be Orik victory lapping this one Quote Link to post Share on other sites
Wilfrid Posted September 8, 2011 Share Posted September 8, 2011 Funny thing is, we all know Zagat's content is useless. But it could still be valuable to Google. Quote Link to post Share on other sites
Chambolle Posted September 8, 2011 Share Posted September 8, 2011 Zagats = Relationships with Restaurants Quote Link to post Share on other sites
Anthony Bonner Posted September 8, 2011 Share Posted September 8, 2011 so you think they paid less for Zagat than the cost of raiding open tables sales force? Quote Link to post Share on other sites
Wilfrid Posted September 8, 2011 Share Posted September 8, 2011 I would love to know what they paid. Zagat couldn't find a buyer at $200m in 2008. Yelp turned down $500m from Google (2009?). Quote Link to post Share on other sites
Chambolle Posted September 8, 2011 Share Posted September 8, 2011 No outsiders know yet. Informed people are speculating: http://techcrunch.com/2011/09/08/zagats-price-under-66-million/ Quote Link to post Share on other sites
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