Two of the biggest names in restaurant-related tech are joining forces.
Grubhub said Thursday that it will buy Yelp’s Eat24 delivery service for $287.5 million in cash, sending Yelp’s stock soaring as Wall Street cheered the deal.
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As part of the agreement, Yelp will integrate Grubhub’s ordering into its listings for at least the next five years.
The sum is more than double what Yelp paid for the delivery service two years ago, and the offloading allows the company to return to its core focus as a content hub.
Despite offering a service considered essential to most consumers, Yelp has floundered for the last couple years as it’s tried to figure out how to effectively make money off of that demand. Before today, its stock was down 17 percent for the year. Read more…
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