Google buys restaurant reviewers Zagat in 'first step' towards booking service. Google has placed one of its biggest bets on location to date, acquiring local reviews giant Zagat.

The Internet giant on Thursday announced its latest acquisition -- restaurant-review service Zagat  as it moves to convince users that the company with the funny name is more than just a worldwide search engine. Google can connect people with local businesses, too.

With coupon sites such as Groupon exploding and local news sites on the rise, industry analysts agree that local and social markets are among the fastest-growing areas in technology -- and a space Google clearly wants to emphasize.

In a Google blog post announcing the purchase, Marissa Mayer, Google's vice president of local, maps and location services, said Zagat "will be a cornerstone of our local offering."

The founders, husband and wife team Nina and Tim Zagat, said they will remain co-chairs of the 32-year-old company and will use Google's resources and expertise to expand. Zagat currently offers reviews and ratings on restaurants in more than 100 cities around the world, based largely on surveys of diners.