Yelp (YELP) Acquires Hatch for $270 Million to Boost AI Transformation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Source: seekingalpha
- Acquisition Overview: Yelp announced its acquisition of AI-driven customer management platform Hatch for approximately $270 million in cash, with an additional $30 million in employee retention payments over two to three years, highlighting the company's commitment to the AI sector.
- Strategic Importance: CEO Jeremy Stoppelman stated that this acquisition is a significant step in Yelp's AI transformation, aimed at accelerating the strategy to provide powerful new AI tools to local businesses and enhancing its SaaS offerings.
- Hatch Performance Highlights: As of November 2025, Hatch achieved about $25 million in annual recurring revenue, demonstrating its effectiveness in improving customer communication and conversion rates while helping businesses reduce overhead costs.
- Transaction Timeline: Yelp expects the deal to close in early February, at which point Hatch will become a wholly owned subsidiary of Yelp, further integrating its AI solutions to enhance market competitiveness.
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Analyst Views on YELP
Wall Street analysts forecast YELP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for YELP is 33.29 USD with a low forecast of 30.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
3 Hold
2 Sell
Hold
Current: 27.500
Low
30.00
Averages
33.29
High
40.00
Current: 27.500
Low
30.00
Averages
33.29
High
40.00
About YELP
Yelp Inc. connects consumers with local businesses. The Company's advertising products enable businesses of all sizes to reach a large audience, advertise their products and drive conversion of their services. It offers a range of free and paid advertising products to businesses of all sizes, which include CPC Advertising (Yelp Ads), RepairPal Network and Multi-location Ad Products. Its business page products include Free Business Account, Upgrade Package, Branded Profile, Enhanced Profile, Verified License, Business Highlights, Yelp Connect, Logo and Nearby Jobs. In addition to its advertising products, it also offers features and consumer-interactive tools to facilitate transactions between consumers and the local businesses they find on Yelp. It offers subscription services, licensing payments for access to Yelp data and other non-advertising arrangements. It sells its advertising products online through its Website and Yelp for Business app, and indirectly through partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Yelp (YELP) Acquires Hatch for $270 Million to Boost AI Transformation
- Acquisition Overview: Yelp announced its acquisition of AI-driven customer management platform Hatch for approximately $270 million in cash, with an additional $30 million in employee retention payments over two to three years, highlighting the company's commitment to the AI sector.
- Strategic Importance: CEO Jeremy Stoppelman stated that this acquisition is a significant step in Yelp's AI transformation, aimed at accelerating the strategy to provide powerful new AI tools to local businesses and enhancing its SaaS offerings.
- Hatch Performance Highlights: As of November 2025, Hatch achieved about $25 million in annual recurring revenue, demonstrating its effectiveness in improving customer communication and conversion rates while helping businesses reduce overhead costs.
- Transaction Timeline: Yelp expects the deal to close in early February, at which point Hatch will become a wholly owned subsidiary of Yelp, further integrating its AI solutions to enhance market competitiveness.
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Yelp Unveils 2026 Top 100 Restaurants in the U.S., Ci Siamo Takes the Top Spot
- List Announcement: Yelp has released its 2026 Top 100 Restaurants list, with Ci Siamo in New York City taking the top spot for its classic Roman pasta, highlighting strong consumer demand for high-quality dining experiences.
- Regional Distribution: Texas leads the list with 17 restaurants, including seven in Houston, reflecting the vibrant growth of the local dining culture and contributing to economic development in the area.
- Pricing Trends: Approximately 65% of the honorees are priced under $30 per person, indicating a consumer preference for budget-friendly yet high-quality meals, which also promotes diversity in the dining industry.
- Technological Innovation: Yelp has introduced new AI tools, such as Yelp Assistant and Menu Vision, enhancing user dining experiences by making it easier for consumers to discover and choose restaurants, thereby strengthening the platform's competitive edge.
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