Yelp shares closed 23 percent higher Thursday amid reports it was considering a sale.
Trading was briefly halted for volatility around 1 p.m. EDT Thursday.
The San Francisco-based online business review company has met with investment bankers and made contact with potential buyers in recent weeks, Dow Jones reported Thursday, citing sources. A deal is not imminent, sources told the news service.
"They all would benefit from further traction in the local advertising space, have ample capital to consummate a sale, and would experience technology infrastructure synergies," the firm wrote.
Before Thursday, Yelp shares had plummeted more than 20 percent this year. Its market capitalization was recently at about $2.9 billion.
The company last month reported lower-than-expected first-quarter revenue of $118.5 million. The stock reeled on the results despite that figure growing 55 percent from a year earlier.