Second Look: Evaluating a Monster Buyout (MWW, LNKD)

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By Jon C. Ogg Published
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Monster Worldwide, Inc. (NYSE: MWW) has finally managed to enjoy one positive day after hiring financial advisory service from Stone Key Partners and BofA Merrill Lynch.  The aim is not just assumed to be a buyout but to improve shareholder returns now that LinkedIn Corporation (NYSE: LNKD) and other social media outfits have begun to eat at Monster’s core job search database.

The move is not without challenges.  Monster and other job-search sites killed the newspaper classified business from the year 2000 on.  Now Monster is being eroded from social media and other crowdsourcing outfits that charge little to nothing.  The weak hiring market from 2008 to 2011 added the bulk of the damage, but the change that may have come about the most is user behavior of those seeking jobs.

Credit Suisse evaluated the chances of a buyout and other firms are mixed on the prospects.  Maybe it is a sale, maybe a unit spin-off.  Or, maybe Monster will just have to keep chugging along on its own.

The market believes that at least something positive could come from this.  Shares are up 9.7% at $8.25 and the market capitalization after today’s gain is $972 million.  Before getting too excited, keep in mind that the net tangible assets are now slightly in the negative per Yahoo! Finance data and the stock’s 52-week range is $6.34 to $18.47.  This stock was worth more than $30.00 at the start of 2008 and even higher before then.

JON C. OGG

Contact [email protected] for any questions or corrections.

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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