Thursday, February 04, 2010

Monster Acquires Yahoo Hot Jobs for $225 Million

Monster has announced that they will be acquiring the “assets” of Yahoo HotJobs for $225 million in cash. I’m not going to scrape the press release, you can read it here. I wonder what will be left of Yahoo after all of their consolidations, partnerships and sales. Yahoo says today’s sale will allow them to focus on their core businesses and, “delivering exceptional experiences to users, partners and advertisers.”

Here are the specific particulars regarding the agreement on top of the HotJobs acquisition, “Monster and Yahoo! have also entered into a three year commercial traffic agreement, to take effect upon the closing of the acquisition, in which Monster will become Yahoo!’s provider of career and job content on the Yahoo! homepage in the United States and Canada. The traffic agreement calls for performance based annual payments calculated by clicks and expressions of interest, subject to annual floors and ceilings.

In addition, the traffic agreement provides Monster with an exclusive right for a period of time following the closing of the acquisition to negotiate similar traffic agreements with Yahoo! properties on a global basis, including countries in Europe, Asia and Latin America, subject to certain limitations.”

The job aggregators including Simply Hired and Indeed are doing well because they pull in jobs from multiple sources. But many of the jobs that the aggregators pull in come from Monster and that means Monster most likely made money on the initial job posting.

The interesting thing here is that Web 1.0 is still alive and kicking. It’s also interesting that when you look at so many categories, the Web 1.0 site in that category is still the biggest player.

As a side note, I still think Yahoo will wind up with AOL – the more they sell off, the more appealing the merger would be. Especially as both businesses get even closer in terms of offerings.