Money Matters - Simplified

Google acquires restaurant review service Zagat

Google did not provide financial details about the purchase.

Google Inc. has acquired popular dining ratings authority Zagat, which is known for its burgundy-colored guides to local restaurants.

The purchase of Zagat is being seen as the Web search giant’s attempt to extend in rapidly growing local commerce market.

Founded in 1979 by husband and wife duo Tim and Nina Zagat, the company rates hotels, eateries, retailers and other vendors, and offers world’s most influential and trusted consumer reviews.

How will Zagat help Google?
The acquisition of Zagat will give Google access to the review company’s valuable content about restaurants, hotels and nightclubs that the search mammoth will combine with its popular online maps and mobile search services.

According to reports, company founders Tim and Nina Zagat will be co-chairs of 32-year-old company and help maximize Zagat's product quality and growth using Google's resources and expertise.

"Moving forward, Zagat will be a cornerstone of our local offering—delighting people with their impressive array of reviews, ratings and insights, while enabling people everywhere to find extraordinary (and ordinary) experiences around the corner and around the world," Marissa Mayer, vice president of local, maps, and location services at Google, wrote in a blog post.

Mayer belives that Google and Zagat collaboration will complement each other.

“Their surveys may be one of the earliest forms of UGC (user-generated content),” Mayer wrote, “gathering restaurant recommendations from friends, computing and distributing ratings before the internet as we know it today even existed. Their iconic pocket-sized guides with paragraphs summarizing and ’snippeting’ sentiment were ‘mobile,’ before ‘mobile’ involved electronics.”

Zagats will remain active in business
Google did not provide financial details about the purchase.

According to reports, company founders Tim and Nina Zagat will be co-chairs of 32-year-old company and help maximize Zagat's product quality and growth using Google's resources and expertise.

"We are thrilled to see our baby placed in such good hands and to start today as official 'Googlers,'" the Zagats said in a joint statement.