bears5122 - 11:35 pm on Dec 22, 2009 (gmt 0)

I think it makes a lot of sense for Google. Gain access to the traffic of a top site that is locally focused. The traffic quality on Yelp is infinitely more valuable to a small, local business than anything Google can offer. With a friend who just opened a local eye car business in Chicago, they started getting 2-3 appointments a day off Yelp after a couple customers put up favorable reviews.

As for Yelp, I don't know how you turn that kind of money down. Maybe the details of the deal weren't as favorable as TechCrunch is reporting, but I still think you need to sell high these days. With the nature of the web and how companies and concepts can fall from grace rather quickly when the next big thing steps in, I'd happily take the fat paycheck.