Here’s Why the Indeed.com Deal Sucks for Monster

In all the hoopla last week surrounding the Indeed.com acquisition, most pundits overlooked how bad it was for Monster and its job board brethren.

According to a source who wanted to remain anonymous, Recruit Co., Indeed’s buyer, had a deal with Monster on the table as well. Indeed’s pricetag was rumored to be $1.2 billion while Monster wanted $1.4 billion.

So, a measly $200 million apparently separated the two options. And although Indeed’s revenues are private, one can make an educated guess that it currently doesn’t touch Monster’s.

But since most companies buy other companies for where the puck is going and not where it is, the choice to go with Indeed proved the growth story was with Indeed. The growth story for Monster, in contrast, is likely over, and choosing Indeed highlights that fact.

 

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Tags: Boards, CareerBuilder, Engines, Indeed, Job, Microsoft, Monster, Search, SimplyHired

Comment by Kaurik Raj on October 3, 2012 at 6:18pm

In my perspective this deal reflects where our society is moving. The importance of having information is surpassed by the ability to have access to all information. Sort of the difference between Monster and Indeed. However, one needs to note that while Indeed does present more opportunities to job seekers, it does not match Monster as a repository of talent (which is important because the recruiters are the ones paying the bills). It may just turn out to be just another acquisition for the books. 

With the same logic Kayak's valuation of $1.32 billion should be more than Expedia's of $7.92 billion.

Comment by Suresh on October 4, 2012 at 10:28am

Thanks for the info Joel.

 

Comment by Becky Franzen on October 15, 2012 at 9:15am

Great information! Do you think Indeed's structure and functionality will change as well?

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