The San Francisco-based company is working with investment bankers and was recently in touch with potential buyers, according to the Wall Street Journal.
Yelp has a market capitalization of $2.9 billion, and could go for more than $3.5 billion in a sale, according to the newspaper.
There is no deal imminent, and there is reportedly a possibility that Yelp will decide against selling itself.
About 4.1 million shares of Yelp were traded by 1:15 p.m. following the report, compared to the company's average trading volume of about 3.3 million shares a day.
TheStreet Ratings team rates YELP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YELP INC (YELP) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."