Google acquires Zagat (restaurant reviews)
Companies in Relationship
, Zagat Survey
Initial Announcement Date:
Consideration: $151 million in cash; $37 million attributable to Zagat brand; $102 million to goodwill (Source: Google 10-Q)
Google acquired Zagat Survey, LLC from General Atlantic LLC, Kleiner, Perkins, Caufield & Byers and Allen & Company Inc., Investment Arm for approximately $151 million in cash. Zagat publishes reviews for restaurants worldwide. The company's offerings include printed guides, Website information, and mobile products. Tim Zagat and Nina Zagat, founders of Zagat Survey, will continue to work as co-Chairs.
In acquiring Zagat, Google is supporting its move into the rapidly growing local commerce market. The deal underscores Google's local and mobile initiatives. Zagat is a significant add-on to Google Places and will help it compete with companies like Yelp in popular searches for restaurants and hotels. Google increasingly owns select media content outright as opposed to simply indexing.
December 2012 -- The integration of Zagat into Google does not go smoothly. Zagat employees, earlier designated as temps without Googler benefits, are informed that their contracts will not be extended.
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