Actionable news
All posts from Actionable news
Actionable news in GRUB: GRUBHUB Inc,

Yelp shares skyrocket as it turns an unexpected profit and strikes a deal to sell Eat24 to GrubHub

Yelp shares rallied as much as 20 percent in after-hours trading on Thursday, after announcing it would sell one of its businesses to GrubHub and buy back $200 million worth of shares.

Yelp agreed to sell Eat24, an online food ordering business, to GrubHub, the parent company of Seamless and MenuPages. The $287.5 million all-cash deal will unite Yelp and GrubHub in a partnership that allows Yelp users to order online directly from GrubHub.

Lanny Baker, Yelp's chief financial officer, said in a statement that the deal "demonstrates the value we've created over the past two years." Yelp acquired Eat24 for $134 million in 2015.

GrubHub shares briefly fell about 7 percent after hours, but quickly pared losses, last down less than 1 percent.

Yelp also announced second quarter earnings on Thursday, handily beating analysts' estimates and turning an unanticipated profit. Yelp reported earnings of 9 cents per share on revenue of $209 million. That's up compared to earnings of 1 cent per share on...