Monster Worldwide To Acquire Yahoo HotJobs For $225 Millions – Will It Trigger M&A Activity Back Home?

U.S economy is predicted to perform on a dicey ground for quite some time but the employment activity surely seems to be on uptrend worldwide.In a seconded move Monster Worldwide Inc has decided to acquire Yahoo HotJobs for $225 Million in cash making itself a formidable player in Online recruitment space just behind Careerbuilder in US.

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Yahoo since a long time has been looking at trimming down various non-allied businesses in order to cut costs and renew its focus on online consumer offerings.Its job property – Yahoo HotJobs which it acquired for $445 Million way back in 2002 was showing healthy growth rate of 23 % so can be deemed a good match for Monster to seize the growth of Careerbuilder, its largest US based competitor.

Monster worldwide will also enter into a multi-year agreement with Yahoo on completion of this acquisition. The agreement will allow monster to become Yahoo’s provider of career and job content on the Yahoo’s homepage in the United States and Canada.Yahoo stands to gain yearly payment of around $20 Million to $31 Million based on performance and clicks metrics.The valuations for this acquisition is around 2X revenues similar to what Monster Worldwide trades in US markets.

Monster reported decline of 27% in revenues at $213 million in Dec- Quarter compared with $293 million,in a year ago period.Monster Worldwide in the meantime has generated 42% of its revenue outside the United States.

Will it Trigger M & A Activity in India’s Online Recruitment Space?

The success in India’s Online recruitment space requires large Economies of Scale in order to attract bouts of recruiters and job applicants. Recruitment Portals like Naukri from Info edge already has such scale and are even concentrated on Niche segments by way of Firstnaukri.

The other prominent players in this space includes Timesjobs (Times Business Solutions),  Clickjobs ( Consim Info through Perspi Interactive) and Shine (HT media through Firefly e-Ventures Ltd.). They all seem less interested in M & A as attaining economies of scale is their first priority and acquiring niche property might not auger well for integration synergies.

So we expect a narrow consolidation in domestic space but do expect big announcements from Global recruitment players operating out of Asia & India as even region specific deals will become a reality in future looking at surging economic activity and hiring momentum.

2 Responses to “Monster Worldwide To Acquire Yahoo HotJobs For $225 Millions – Will It Trigger M&A Activity Back Home?”

  1. HotJobs Hater
    February 5, 2010 at 1:16 am #

    If you actually had to use HotJobs you would agree with the hundreds of users who have posted comments on the HotJobs Suggestion Board: HotJobs SUCKS.

    All any prospective buyer of HotJobs has to do is view the comments on the HotJobs Suggestion Board and that would deter them from buying it. They would be able to tell right away that they would have to do a long and costly repair job on this train wreck in order to rebuild HotJob’s lost credibility.

    And what makes matters worse is that concerned HotJobs users have spoon-fed YAHOO everything they needed to do to clean up this stinking cesspool and still nothing got corrected. In fact it got worse, probably because no one at HotJobs cares anymore. There appears to be absolutely no quality control over the job postings.

    The major complaints against HotJobs can be summarized as follows:
    •The site is loaded with phony jobs, spammers, scammers, phishing, personal information-capture trolls, and fraud.
    •Inability of users to delete a profile. Ever.
    •Many broken features
    •Inability of HotJobs to take corrective action when the problem is specifically pointed out.
    •“Canned” responses from HotJobs staff.

    Good luck Monster. SUCKERS. You just wasted $225 million buying this sewer.

  2. Random
    February 5, 2010 at 3:46 pm #

    “They all seem less interested in M & A as attaining economies of scale is their first priority and acquiring niche property might not auger well for integration synergies.”

    Don’t you think M&A would lead to higher scale for smaller/newer players in online recruitment space, which would help them compete with naukri/monster

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