Yahoo Inc. on Wednesday launched a bid to acquire online job site HotJobs Inc. for US$436 million in cash and stock, hoping to win favor over a competing bid from the parent company of Monster.com.
Yahoo launched the offer of $10.50 per share of HotJobs stock, hoping HotJobs shareholders will see more value in Yahoo's offer than that of TMP Worldwide Inc., which owns Monster.com. TMP launched an offer five months ago to take over HotJobs, in a deal that was valued at $460 million at the time and was scheduled to close this quarter.
Yahoo's Chairman and Chief Executive Officer Terry Semel made the offer, which has been unanimously approved by Yahoo's board of directors, to Dimitri Boylan, CEO of HotJobs, Yahoo said in a statement issued Wednesday.
Yahoo's offer provides HotJobs shareholders with "superior value, less regulatory risk, and faster execution that HotJobs's pending merger with TMP Worldwide," Boylan was quoted as saying in the statement.
Yahoo would commence an exchange offer for all of HotJobs's outstanding common stock, followed by a merger at the same per share price, the company said in the statement. Yahoo would use its current cash balances to finance the cash portion of the deal, the company said.
Ahead of the news, HotJobs' stock (HOTJ) closed at $6.47 on the Nasdaq, up 2.7 percent. Yahoo's (YHOO) stock closed at $19.14, up 3.9 percent.