Yelp shares rise over 20% on sale rumours

Jeremy Stoppelman in front of Yelp logo Image copyright Reuters
Image caption Yelp was co-founded by Jeremy Stoppelman in 2004 and is now worth more than $3.4bn

Shares in online business review site Yelp surged more than 20% after the Wall Street Journal published a report that the firm was looking for a buyer.

Citing people familiar with the matter, the US newspaper said Yelp was looking to sell itself as it continues to struggle.

Growth in unique visitors to the site, which allows users to submit reviews of businesses, has been declining.

That has led to a fall in advertising sales, worrying investors.

Founded in 2004, the company went public in 2012 at a valuation of $900m and is currently worth more than $3.4bn (£2.2bn).

Last week, the company reported a net loss of $1.3m for the first quarter of 2015, sending shares in the firm plummeting to a two-year low.

It said that while advertising revenue from local retailers had grown by 51% from a year earlier to $98.6m, revenue from established brands had decreased by 11%.

Yelp did not respond to a request for comment.

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