Google buys Zagat for an undisclosed amount, OpenTable's shares drop
Google (NASDAQ:GOOG) has purchased online restaurant guide, Zagat, on Thursday for an undisclosed amount, sending rival OpenTable's (NASDAQ:OPEN) shares down nearly 10%.
Zagat will likely be integrated into Google's existing mapping features, providing content for its 'Google Places' websites.
The restaurant guide, which is now available for cities in over 100 countries, is based on the Zagat survey, which polls thousands of consumers and compiles their opinions into a single review using a 30-point rating scale.
On its website, Zagat announced the news, giving Google top scores in four mock categories - local, social, mobile, and useful. The actual survey ranks restaurants according to food, decor, service, and cost.
According to reports, Zagat, which was originally started by Tim and Nina Zagat as a hobby in 1979, had enlisted the help of Goldman Sachs as early as 2008 to find a buyer for the company, which was allegedly valued at up to $200 million at that time.
In 2009, Google was in talks to buy Zagat rival Yelp for at least $500 million, but the deal fell apart when Yelp walked away.
Reports also claim that the Federal Trade Commission has begun a review of the transaction, with particular examination of any anti-trust laws that may be broken.
Google shares rose 0.24% to $535.30 as of 3:59 pm EDT, while Zagat rivals, like OpenTable, sank 8.32% to $57.51 per share.
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