Archive for February, 2010

Global online jobs placement portal Monster Worldwide, Inc., has entered ito a deal to acquire Yahoo’s jobs-listings website HotJobs, for $225 million in cash.

Under Carol Baratz, the internet major plans to divest non-core assets to focus on its core advertising business.

New York City-based Monster Worldwide with 2008 revenues of $1.3 billion, holds around one-third of online jobs postings market share in the US and is the second largest online employment website in the US and Canada after rival Careerbuilder.com.

Both companies have also entered into a three-year commercial agreement, in which Monster will provide career and job content for Yahoo’s homepage in the US and Canada.

Monster will pay Yahoo a performance-based annual payments calculated by clicks and expressions of interest, subject to annual floors and ceilings. Following the closing of the transaction, Monster can negotiate similar traffic agreements with Yahoo’s global sites including countries in Europe, Asia and Latin America, subject to certain limitations.

After being hired last year to head Yahoo, Bartz had undertaken a review of the struggling search engine company’s product portfolio and sold its Zimbra email business to VMware,¬† with HotJobs widely speculated to be next on the divestiture list.

But with corporate hiring in the US having virtually ground to a halt due to the global recession, the internet giant found no takers for the website.
Now with the economy poised to recover, Monster decided to acquire HotJobs now, lest a rival put in a bid.

For Yahoo the sale is a loss of $221 million, which it had acquired in 2002 for $436 million after beating a rival bid.

The acquisition will catapult Monster to the top spot in the online jobs-listings business. According to research group ComScore, Monster is in the second spot with 16.5 million users as of December, while HotJobs is placed third with 11.1 million users and CareerBuilder ranked first, with 16.6 million unique visitors.

Monster believes that the acquisition of HotJobs and the traffic agreement with Yahoo! will provide a number of benefits to jobseekers and employers by being able to offer employers a significantly larger pool of prospective candidates across diverse regions and industries.

“HotJobs with its significant customer base plus the traffic agreement are an ideal complement to Monster’s innovative recruitment solutions and global reach,” said Sal Iannuzzi, chairman, chief executive officer and president of Monster Worldwide. “These agreements, combined with Monster’s career Communities and our recently introduced 6Sense(TM) semantic search technology, will bring substantial new benefits for employers seeking more qualified candidates and job seekers searching for more relevant opportunities across a wider range of industries – globally.”

“Bringing together Monster and HotJobs creates even greater access and opportunities for both recruiters and job seekers,” said Hilary Schneider, EVP, Yahoo.

“The transaction with Monster enables us to continue to provide an important service to our users through the traffic agreement. Yahoo! remains focused on its core businesses and delivering exceptional experiences to users, partners and advertisers,” he added.

Yahoo! will continue to manage its broader Newspaper Consortium (NPC) partnership, including providing both search and display advertising, content distribution, and its ad-serving platform, to newspapers in its NPC.


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Beijing: China responded Thursday to an accusation from the United States that it was artificially deflating the value of its currency by saying it would not bow to pressure from the United States to revalue its currency. US president Barack Obama had said Wednesday that he would like to ensure that China did not keep its currency at an artificially low level as it gave it an unfair advantage in exports.

Speaking at a regular news conference here a Chinese foreign ministry spokesman said that ”wrongful accusations and pressure will not help solve this issue.”

He was responding to remarks made by president Obama in Washington on Wednesday at a meeting with Democratic senators.

The United States, Obama said, has ”to make sure our goods are not artificially inflated in price and their goods are not artificially deflated in price; that puts us at a huge competitive disadvantage.”

Economists are broadly agreed that the Chinese currency, the renminbi (RMB, also known as the yuan), is undervalued between 25-40 per cent against the dollar and other currencies. Under constant pressure from the preceding Bush administration the Chinese government decided to do away with the yuan’s peg to the dollar and allow the currency to float in a narrow band against the dollar and other currencies in July 2005.

The effect was immediate with the renminbi appreciating 21 per cent.

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Export revenues of the Indian IT-BPO industry are expected to record a growth of 5.5 per cent to reach $49.7 billion in the current financial year (2009-10) despite the impact of the global economic slowdown.

Software exports from the country are expected to rise to over $56-57 billion in the financial year 2010-11, from  $49.71 billion in 2009-10 and $47.16 billion in 2008-09, the National Association of Software and Services Companies (NASSCOM) said in a release.

The Indian IT industry has emerged stronger from the global economic meltdown to post encouraging results and the domestic market for the IT industry is expected to witness 12 per cent growth in FY09-10, to reach Rs66,200 crore, according to NASSCOM.

For the financial year 2010-11, NASSCOM expects India’s software and services exports revenues to grow 13-15 per cent and domestic revenues to grow by 15-17 per cent.

The government’s IT spend is projected at Rs15,000 crore in 2009 and is expected to reach Rs25,000 crore by 2011. NASSCOM also projected a $9 billion business opportunity in e-governance in the country.

The IT industry in India will continue to be a net hirer and the direct employment is expected to grow 4.0 per cent and cross 2.3 million with over 90,000 jobs added in FY09-10, according to NASSCOM.

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Top Hollywood studios lose internet piracy Hollywood film studios today received a major blow in their fight against internet piracy when they lost a copyright case in Australia against Australian internet provider, iiNet, for allowing its customers to “illegally” download movies.

The Australian Federal Court in Sydney has ruled that iiNet could not be held responsible for unauthorised downloads of movies using its service.

The copyright case was filed jointly by a group of Hollywood studio majors, including Village Roadshow, Universal Pictures, Warner Bros, Paramount Pictures, Sony Pictures Entertainment, 20th Century Fox and Disney.

Hollywood studios argued that the Perth-based iiNet network, Australia’s third-largest ISP, had allowed “illegal” downloads of nearly 90 films and TV serials, including `Batman Begins’, `Transformers’ and `Heroes’, since June 2008.

The Hollywood group said that iiNet not only failed to take steps to stop illegal file-sharing by customers, but also breached copyright by providing data through its system.

“While I find that iiNet had knowledge of infringements occurring, and did not act to stop them, such findings do not necessitate a finding of authorisation,” federal judge Dennis Cowdroy said in his judgment.suit in Australia news

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