Selling HotJobs, Yahoo Is Dumping A Dog

Yahoo's wacky store

We applauded Yahoo for selling HotJobs to Monster for $225 million, even though that’s ~$200 million less than Yahoo paid for the company in 2002.

JP Morgan analyst Imran Kahn shares our enthusiasm. He writes:

We see this as a positive as the company increases its focus on core businesses. We believe that Yahoo! has been trying to sell this asset for a while and are pleased to see this deal close so mgmt can focus more attention and investment on core business lines including content, display, and search.

The deal includes a multi-year traffic component.
We see this as beneficial to both parties as Monster will capitalise on Yahoo!’s extensive reach while Yahoo! will continue to monetise its traffic and maintain the user experience.

Sale price indicates a loss on the investment. Yahoo! purchased HotJobs for ~$436M in equal parts cash and stock in 2002. We note that this is well above the current sale price of $225M.

However, the business has been declining. Given the macroeconomic environment and increased competition from CareerBuilder, Monster, and Dice among others, business has fallen off recently. According to comScore data Unique Users to the site were down 32% Y/Y in December.

See which other Yahoo properties were for sale starting last Fall →

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