Yahoo has found a buyer for HotJobs. The Web giant has unloaded the employment site to rival Monster Worldwide for $225 million in cash.
Back in 2001, just as more job seekers and recruitment companies were shifting their searches to the Web, Yahoo acquired HotJobs in a deal that was valued at around $436 million. But ever since CEO Carol Bartz took on her new role last year, Yahoo has been seeking a buyer for HotJobs -- as Bartz looked to narrow the company’s focus on its core media businesses.
J.P. Moran analyst Imran Khan praised the motivation behind the sale. “We see this as a positive,” he wrote in a note yesterday. “We are pleased to see this deal close so management can focus more attention and investment on core business lines including content, display and search.” Khan estimated that HotJobs pulled in around $100 million last year.
As part of the deal, Monster and Yahoo have entered into a three-year traffic-sharing arrangement. Once the transaction officially closes (probably in the third quarter), Monster will become Yahoo’s default supplier of job listings and career-related content in the U.S. and Canada.