Yelp (NYSE:YELP) could be up for sale as one of its biggest shareholders may push the company to explore opportunities, including the possible sale of the business. Yelp is a community-driven platform that offers local business information and reviews.
According to a Wall Street Journal report, activist investor TCS Capital Management, which revealed holding an over 4% stake in Yelp, is rumored to be pushing the management to look into strategic alternatives, including a sale of the business. Following the report, Yelp stock is up more than 12% in the pre-market session on Tuesday.
TCS Capital’s founder and President, Eric Semler, believes that Yelp could be sold to another company or a private equity buyer for at least $70 a share. In addition, Semler also plans to acquire Yelp. Further, he recommends that the board may also explore a tax-free merger with Angi (NASDAQ:ANGI), an online services company.
This comes at a time when Yelp is performing well, with back-to-back strong revenue performances. The company has delivered record revenues for six consecutive quarters, reflecting strong demand for its performance-based ad products and new product launches.
What is Yelp’s Stock Price Prediction?
While Semler expects Yelp to be sold at $70 per share, analysts’ average price target of $33 shows an insignificant upside potential of about 1.48% from current levels.
Further, given the economic uncertainty, Yelp stock has received one Buy, two Hold, and two Sell recommendations for a Hold consensus rating.
