The publisher of the eponymous Zagat guides, which put itself on sale earlier this year, has now changed its mind after lukewarm interest and the changing economic climate. The company hired Goldman Sachs to seek a buyer for it six months ago. “In light of the current economic climate, we have decided to continue to grow our business organically,” Founder Tim Zagat said. When it came on the market first, the hopes were around $200 million...some buyers balked at the price, and later reports pegged strategics as the possible best option for the company. In 2000, Zagat family sold off a third of its business, then valued at more than $100 million. The buyers were an investment group led by General Atlantic Partners, and including Kleiner, Perkins, Caufield & Byers and Allen & Company.

The company now plans to “ramp up its investment in...its Internet and mobile products and services, while aggressively extending its licensing partnerships worldwide.” They have to: with the rise of consumer reviews of restaurants and hotels online (and with strong local sites like Yelp), the company’s business is facing tough competition. Also, Zagat’s online business has largely remained a paid subscription service, thus capping its growth.

Update: Tweaked the headline following the comment below, to reflect that they probably had buyers, just not at the price they wanted.

• Zagat Rates: PE Firms Say Too High; Strategics May Be the Best Option
• Zagat Publisher Put on Sale; May Fetch More Than $200 Million