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Online Review Sites Launch IPOs

Recent website IPOs have entered the market at $100 million or higher.

Yelp, the website that publishes consumer reviews of local businesses and restaurants, has declared its initial public offering worth at approximately $100 million. While not insignificant, Advertising Age notes that the sum is much lower that those of other companies, including Zynga and

Yelp, the website that publishes consumer reviews of local businesses and restaurants, has declared its initial public offering worth at approximately $100 million. While not insignificant, Advertising Age notes that the sum is much lower that those of other companies, including Zynga and Groupon.

Currently, the site has been pulling in an average of 61 million visitors every month, who together have posted 31 million reviews, according to the magazine. But despite all its users and noteworthy IPO, Yelp still will be posting a loss of $7.6 million in the first nine months of the year, Ad Ages says, and the company acknowledges that the huge growth it has experienced recently will not be long lasting.

As The Wall Street Journal points out, Yelp has still managed to earn $58.4 million in revenue and increased its unique visitor rate 63 percent year-over-year.

Angie's List, another online review website, also went public this week, entering the market with a $160 million IPO and a $667 million market capitalization, Seeking Alpha reports. Altogether, nine companies were set to go public the week of November 14, and were working to fundraise a total surpassing $1.5 billion, the source says.
 

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