Monster will buy HotJobs for $225 million in cash, the companies announced today.
This is a long-anticipated but still very smart move by Yahoo. HotJobs is not central to Yahoo’s core portal business. This way it gets to unload the costs of maintaining the service, some cash now, and some cash later.
Some other businesses we expect Yahoo to try to sell next include Yahoo! Games and Yahoo! Shopping. Earlier today, Jeff Bercovici reported that Yahoo has given up trying to sell Yahoo! Small Business.
One group this deal could negatively impact are the newspapers in Yahoo’s Newspaper Consortium, Though Yahoo says it will maintain that partnership by “providing both search and display advertising, content distribution, and its ad-serving platform,” the biggest draw for newspapers was always the ability to sell into and split revenues with HotJobs.
Yahoo bought HotJobs $436 million in 2002.