The two companies also struck a three-year agreement under which Monster will provide career and job content for the Internet giant's homepage in the U.S. and Canada. Under terms of that agreement, Monster will make payments to Yahoo, subject to annual floors and ceilings, based on the number of clicks and expressions of interest that Yahoo drives to the classifieds company.
Yahoo last month agreed to sell email technology unit Zimbra, a start-up it acquired for $350 million little more than two years ago, to VMware Inc. (VMW). Terms of that deal weren't disclosed.
Yahoo, which bought HotJobs in 2001 for $436 million, has also reportedly been shopping around its small business unit although no buyer has yet emerged.
The HotJobs deal comes one week after Yahoo Chief Executive Carol Bartz seemed to downplay the company's efforts to sell assets, adding that she was looking forward to making acquisitions and investments aimed at strengthening the company.
"It's a decent price for a distressed asset with limited buyers," said BGC Partners analyst Colin Gillis.
Monster has attracted job seekers during the economic downturn, but advertisers have slashed budgets. Monster responded by cutting costs, and recently launched a new search-and-match technology in its latest effort to regain leadership in the industry.
CareerBuilder was in the top spot with 16.6 million unique visitors in December, compared with Monster's 16.5 million visitors, according to research group comScore.
HotJobs has slipped to a distant third, with 11.1 million uniques in December. Accounting for some 3.5 million overlapping visitors, comScore said the addition of HotJobs would give Monster about 24 million unique monthly visitors.
Monster said the HotJobs acquisition would lead to an increase in job matches and search efficiencies and be breakeven on a pro forma full year earnings in 2010 and accretive thereafter, including the costs incurred under the traffic agreement.
[Source: Wall Street Journal]
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