According to a TechCrunch source, Yelp was in the final stages of selling to Google for $550 million. But then Yahoo! came along and made an offer to buy out Yelp for $750 million. Yelp had their investment bank ask Google if they wanted to match Yahoo!
Google refused to get in a bidding war and did not actually believe? according to another TechCrunch source? that there was a deal of that size on the tablet.
The Yelp management rather wanted to take the offer from Google even though it was for $200 million less. But the Yelp board of directors could not approve the Google deal when the Yahoo! offer was much bigger.
Since the Yelp management team did not want to work for Yahoo! and the board of directors not willing to take the Google offer, nothing ended up happening.
Yelp isn’t the only tech start-up that refused to take an acquisition offer from Yahoo! Foursquare walked away from a $100 million offer from Yahoo! not too long ago.