Tag Archives: HotJobs

Monster Buys HotJobs From Yahoo

Monster Worldwide has bought HotJobs from Yahoo for $225 million. It will also be in charge of Yahoo’s recruitment content in North America for the next three years, bringing in perhaps another $100 million for the life of the deal from home page traffic, etc. As part of the deal, which closes in 3Q 2010, Monster also gets exclusive rights to negotiate similar arrangements with Yahoo’s overseas properties.

HotJobs has been on the market since Carol Bartz took over as CEO of Yahoo early last year (or even before). It hasn’t been clear if anyone would buy it for more than a fire-sale price. The deal’s price of $225 million does represent a significant discount from the $439 million that Yahoo paid in 2002, but it is more than some handicappers had been predicting.

The deal likely propels Monster well past Gannett’s CareerBuilder as the online recruitment leaders (by revenue). Lately, CareerBuilder’s lagging profits have become a drain on Gannett’s profits. Likewise, Monster today reported during an earnings call that 4Q revs were down 27 percent, and that it suffered a net loss of $2.1 million on 4Q revenues of $213 million.

For Yahoo, the deal is the latest in a series of selloffs. Notably, it sold its search business to Microsoft last year, and de-emphasized other areas such as shopping and small business. It has also been rumored to put some of its other verticals in play as well.

HotJobs, of course, had been the original glue that brought Yahoo and the newspapers together. But the consortium has lately been focused more on using Yahoo’s APT behavioral targeting advertising platform. Some members of the consortium already use Monster.

Recruitment remains a huge category. But in recent years, it has been challenged by the recession. It has also become a major battlezone driven by technologies, such as semantic search-and-match job listings, mapping and communities of interest. Indeed, a growing part of the market has moved to niche specialties, such as trade associations etc. At the same time, ancillary verticals such as vocational education, relocation and job fairs have proved to be less important than once thought.

HotJobs’ Launches ‘Pay-Per-Candidate;’ Broad Implications

In an action that could have broad implications for the classifieds industry, Yahoo! HotJobs has added a “Pay Per Candidate” model that guarantees that recruiters aren’t paying for untouched “ghost” listings. Pay Per Candidate only charges recruiters when candidates view a listing and act on it.

The HotJobs model, similar to efforts launched by niche recruitment sites such as Indeed, allows recruiters to put a ceiling on the number of applications received. Recruiters can also screen candidate credentials so they aren’t paying for unqualified applicants.

HotJobs’ move suggests continued evolution up the search ladder, and the industry’s growing efficiency (and complexity). It is easy to see how Pay Per Candidate could similarly be applied across the board for car sites, real estate sites and other classified segments.

Theoretically, a next step for HotJobs would be to add more searchable elements, matching searches to candidates, and charging a premium for conversions, a la some of the installations of Vast.com’s service.

Yahoo HotJobs For Sale? (Not Yet)

Under the new leadership of CEO Carol Bartz, everything is up for review at Yahoo, and that probably includes HotJobs, its recruitment site. But recent press reports suggesting that HotJobs has already been designated for sale are off base.

The news stories are based on Bartz’s broad answer to a question about which Yahoo properties might be vulnerable. HotJobs has never been singled out.

The future of HotJobs is an especially important issue to many members of the 800-newspaper strong Yahoo consortium, which was initially put together to co-promote HotJobs as a national recruitment solution. HotJobs remains an important part of the consortium’s efforts, although some members of the consortium use other recruitment solutions, such as Monster.com. There has been a lot of focus on behavioral targeting (SmartAds),as well as conversion and take rates.

Bartz herself has already made several gestures in support of the consortium. Last month, she appeared at the consortium’s affiliate meeting in Las Vegas.