{"text":[[{"start":13.27,"text":"In its heyday, Yelp got the attention of American consumers with reviews of local businesses. "},{"start":18.649,"text":"The company’s slow growth and lacklustre share price performance have now brought it scathing critiques from an activist investor. "}],[{"start":25.73,"text":"On Tuesday, TCS Capital Management called for Yelp to explore a sale or combine with online services company Angi. "},{"start":32.884,"text":"TCS, which holds a stake of more than 4 per cent in Yelp, claims it is “shockingly undervalued” and worth more than twice its share price. "}],[{"start":40.81,"text":"That looks a stretch. "},{"start":42.489000000000004,"text":"Founded in 2004, Yelp popularised user-generated write-ups. "},{"start":46.932,"text":"It quickly became the dominant platform for restaurant and business reviews. "},{"start":50.987,"text":"Rapid growth led to a splashy initial public offering in 2012. "},{"start":54.992000000000004,"text":"At its peak in 2014, the stock traded at nearly $100. "},{"start":59.347,"text":"Even after Tuesday’s 8 per cent price gain, these change hands at just $35. "}],[{"start":64.94,"text":"Yelp has struggled to fend off rivals. "},{"start":67.544,"text":"Hungry diners can turn to Google, Open Table, Urbanspoon and even Instagram to find restaurant recommendations. "},{"start":73.91199999999999,"text":"Meanwhile, small business appraisals have become more fragmented and specialised. "},{"start":78.529,"text":"Angi, owner of Angie’s List, focuses on home improvement and local tradesmen. "}],[{"start":83.86,"text":"Yelp generated $1.2bn in revenue last year, helped by gains in advertising sales. "},{"start":90.102,"text":"But its share of US digital advertising spending stood at just 0.4 per cent last year, down from 0.9 per cent in 2017, according to research group Insider Intelligence. "}],[{"start":101.17,"text":"Merging with Angi, as proposed by TCS, should generate cost savings. "},{"start":106.349,"text":"But Angi loses money and trades at just 0.8 times revenue, compared with Yelp’s 1.8 times. "},{"start":112.31700000000001,"text":"Given the tough environment for digital ad sales, even with economies, there is no guarantee that the business will be on a better footing for growth. "}],[{"start":120.83,"text":"Yelp has a solid balance sheet with no debt. "},{"start":123.734,"text":"It holds $414mn in cash and cash equivalents which may have attracted TCS. "}],[{"start":129.79,"text":"A better solution for Yelp than a combination with Angi would therefore be a private equity buyout. "},{"start":134.944,"text":"A decent cash payout would then generate positive reviews from minority investors. "}],[{"start":139.54999999999998,"text":""}]],"url":"https://creatives.ftacademy.cn/album/110026-1684894557.mp3"}