With the sale originally reported by Reuters earlier this year, Google bought the Zagat brand and all of its content in 2011 for about $151 million in the wake of an unsuccessful effort to acquire Yelp.
The reason for the purchase was for the content Google needed at the time to compete with Yelp, TripAdvisor and others that had more reviews and user-generated content. But now that Google has a substantial and growing body of reviews created in part by the more than 50 million Local Guides around the world, Zagat doesn’t hold as much usefulness to Google like they once did.
According to The New York Times’ report, The Infatuation has been around for nine years, and has been profitable.
The Zagat can be considered both good and bad for The Infatuation. How will it figure out which brand to emphasize and to which audience? The Times says, “The company intends to keep Zagat as a separate brand, using it as a user-generated-content counterpart to The Infatuation.”