(YELP - Get Report)
and Yahoo! just seem to mix.
Aside from the obvious fact that both companies start with the letter Y (there have been stranger reasons for mergers), there are aspects of Yelp that Yahoo! wants to emulate. Yelp is an online urban city guide that helps people find the best local businesses, rate and review them.
Discussing Yahoo!'s fourth-quarter earnings, Mayer alluded to the fact Yahoo! needs to be more personal. "The combination of more personalized content and increased product innovation will be key in getting us back to a path for Display revenue growth," she said. The CEO also added that Yahoo! would have "some content costs, which you'll see as we make some of these developments."
That screams Yelp to me, and though the San Francisco-based firm is still not profitable, revenue during the fourth quarter rose 65% year-over-year to $41.2 million. Yelp expects a 53% rise in the same time frame in 2013 revenue, to between $210 million and $212 million.
Yelp could also make sense as Yahoo! seeks to strengthen its ties with
(AAPL - Get Report)
. Yelp was recently integrated as part of Apple Maps, and Yahoo! already provides a load of content to Apple, including stocks and weather. Mayer has previously said partnering is the key to Yahoo!'s future, and a closer integration with Apple certainly couldn't hurt.
Written by Chris Ciaccia in New York