The Future of Print

Yahoo Trying to Sell HotJobs, Yahoo Small Business

Posted in Doom by futureofprint on July 22, 2009

Now, peHUB has learned from multiple sources that as part of Bartz’s drive to dismantle non-core assets, Yahoo is also trying to shed both HotJobs, which Yahoo acquired for $436 million in cash and stock back in 2001, and Yahoo Small Business, which helps customers get their small businesses online by providing them with everything from domain registration to site monitoring to promotional tools.

“They’ve been approached by [major buyout firms] but they’re proactively looking to sell to a strategic investor like a Careerbuilder or,” says one source familiar with the situation, adding that the company may be looking to avoid a future embarrassment. “If a Warburg [Pincus] or a Spectrum [Equity Investors] buys HotJobs for $300 million and resells it for $500 million in two years, that’s going to look pretty bad [for Yahoo],” says this person.

Strategy aside, Yahoo — which is attempting to sell the properties without the help of an investment bank – could use a financial boost. Newly released second-quarter earnings show Yahoo’s total revenues dropped 13 percent to $1.5 billion, despite an 8 percent rise in net income to $141 million.

For now, however, its pitch for both properties doesn’t seem to be resonating with potential acquirers. “They’ve been out there for two or three months; this isn’t a brand-new process,” says a source.

Via pehub


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