Yahoo sells HotJobs to Monster Worldwide for $225M

Feb 04, 2010 By MICHAEL LIEDTKE , AP Technology Writer

(AP) -- Yahoo Inc. crossed off another chore on its housecleaning list Wednesday with the proposed sale of online help-wanted site HotJobs to rival Monster Worldwide Inc. for $225 million.

The all-cash deal marks another step in Carol Bartz's effort to jettison services that have been struggling or don't fit with the Internet company's efforts to focus more on its news, entertainment and communications features.

Yahoo already has closed several unprofitable services and last month agreed to sell e-mail provider Zimbra to VMWare Inc. for an undisclosed amount.

HotJobs' sale price reflects how far it has fallen since Yahoo bought it for $439 million in cash and stock nearly eight years ago. In an ironic twist, Yahoo had to outbid Monster.com's holding company to buy HotJobs.

As often happens in acquisitions, HotJobs' culture quickly clashed with Yahoo's, said Marc Cendella, a former HotJobs executive who now runs another online recruitment service, TheLadders.com. He said nine of HotJobs' top 11 executives left within six months of Yahoo's takeover.

These have been tough times for companies that rely on help-wanted advertising for their income, with the feeble economy and high dampening demand. Monster's profit plunged 85 percent to $19 million last year.

HotJobs is a smaller player in the market than Monster, which generated $905 million in revenue last year. JPMorgan analyst Imran Khan estimated HotJobs 2009 revenue at $900 million.

Yahoo, based in Sunnyvale, still will have an opportunity to get some money out of Monster after HotJobs changes hands. The deal calls for the front page of Yahoo's Web site in North America to feature Monster's job listings and other employment content for the next three years. Monster will make annual payments to Yahoo based on the volume of traffic flowing from the links.

Monster, based in New York, is counting on HotJobs to make it a more formidable challenger to CareerBuilder.com and extend its geographic reach by connecting with about 600 newspapers that belong to HotJobs' network.

In a Wednesday conference call, Monster executives told analysts that they expect to retain about 275 of HotJobs' employees. The executives indicated some layoffs are likely, but didn't indicate how many jobs will be cut. A Yahoo spokeswoman declined to say how many people currently work for HotJobs.

If the deal is approved by regulators, Monster plans to take over HotJobs between June and October.

Explore further: Why the Sony hack isn't big news in Japan

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Microsoft Buys Stake in CareerBuilder.com

May 10, 2007

The agreement gives MSN a piece of CareerBuilder.com, extends an existing deal between the companies until 2013, and adds in MSN's European partners.

Yahoo plans first major layoffs under new CEO

Apr 15, 2009

(AP) -- Yahoo Inc. is gearing up for its third round of mass layoffs in 14 months, signaling the long-slumping Internet company is still struggling to snap out of its financial malaise under a new leadership team.

Monster settles SEC backdating charges for $2.5M

May 18, 2009

(AP) -- Monster Worldwide Inc., which runs the Monster job search Web site, has agreed to pay $2.5 million to settle federal civil charges that it secretly backdated options for its executives and employees.

Recommended for you

Why the Sony hack isn't big news in Japan

8 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

13 hours ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

14 hours ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.