Internet Company, Yahoo Inc. sold its site job search site, HotJobs to its better-known competitor, Monster Worldwide Inc. for $225 million in cash today.
The deal is part of Yahoo CEO Carol Bartz's plan to streamline struggling parts of the company to gather more resources for their efforts to expand present entertainment, news and communications sections.
Hot Jobs has been struggling for some time, selling for a little more than half of what it was purchased for in cash and stock in 2002. While management may be partially to blame for the fall it is more than likely the result of the company’s reliance upon help-wanted advertising that led to its troubles. Monster has been similarly tried through the poor economy, plummeting 85 percent in 2009.
HotJobs made an estimated $900 million in revenue for 2009, $5 million less than the presumed amount for Monster.
Still the deal may work out well for Yahoo who has established terms that require the front page of Yahoo's North American Website to display Monster's job listings until 2013. Traffic volume from the links will determine annual payments from Monster to Yahoo.
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