Someone just caught the Monster
Steve’s breakdown: You heard right, Monster is getting sold for $429 million to Randstad Holdings. Though kbs+ just won the business in January, as we all know, all bets are off on the ad account.
NEW YORK, NY: Monster.com, the online jobs listing site and an internet pioneer when it went public in 1996, is being sold for a fraction of its peak value to a Dutch recruiter firm.
Randstad Holdings is paying $429 million in cash, or $3.40 a share, for Monster Worldwide. That’s a 23 percent premium to the company’s closing price on Monday.
But it’s a far cry from the company’s value during the dot-com boom in March 2000, when it topped $86 a share and was worth nearly $8.5 billion. Monster was one of the few survivors from that early internet era and held on to much of its value in the decade after it went public.
Before the internet bubble burst, the company won raves for its memorable 1999 Super Bowl ad. The spot, dubbed “When I Grow Up,” featuring kids talking about being exploited and marginalized in the workforce as adults.
Monster was still valued at more than $7.5 billion in 2006 before the job market tanked and it started losing business to LinkedIn, Glassdoor and a host of other job-hunting upstarts.
After that the company was viewed as a takeover target. Monster hired bankers to explore a sale in 2012, but it would take another four years for a deal to materialize. The stock price bottomed out at $2.25 in June.
Monster on Tuesday also reported a wider loss and slumping sales for the second quarter. The loss expanded to $124.2 million, or $1.40 a share, from a loss of $1 million, or 2 cents, a year earlier. Sales fell 10 percent to $150.9 million.
“Together with Randstad, Monster will be better positioned to fulfill our core mission, and our employees will benefit from becoming part of a larger, more diversified company,” Tim Yates, CEO of Monster, said in a statement. “Equally important, this transaction offers immediate value to our shareholders.”