Why Google's Purchase of Zagat Is Direct Threat to Yelp
The Internet giant acquired the restaurant guide for a reported $100-$200 million.
Google's acquisition of restaurant review guide Zagat is part of the company's ongoing efforts to be a major player with local commerce assets.
The purchase expands the company's content on local businesses to include more than just directions. A Google rep told Reuters that the deal gives the Internet giant information about restaurants, hotels and nightclubs that can be paired with its popular online maps and mobile search services.
Yelp, Groupon and OpenTable are among the websites that will likely suffer from Google's latest acquisition. Since Yelp accepts restaurant and service reviews from anyone and Zagat combines submissions into a single trusted review, Google's local search results might be a "better place to start," muses The Wall Street Journal. Google could also begin offering a restaurant reservation service that replaces the current one offered by OpenTable that costs eateries hundreds of dollars in hardware costs.
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the giant marches on,devouring everything in its' path...
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