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The New York Times reports that Google has reached an agreement to buy Zagat, the restaurant guide company that “has grown from a two-page typed list to a global empire with millions of loyal readers and reviewers happy to rave about their favorite restaurants and bars.”

The deal reportedly is worth $66 million to the founders, Tim and Nina Zagat, who say they plan to stay with the business.

The sale is designed to be good for both companies. While Zagat may be the best brand in the restaurant guide business, its preeminence has been challenged in recent years by online review sites. At the same time, Google is trying to develop more comprehensive local search services, and Zagat provides it with a treasure trove of content.
KC's View:
There’s a good reason for Google’s strategic emphasis on local; small businesses reportedly spend something like $140 billion a year on advertising, and Google wants a piece of that pie.