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It’s been the talk of the human resources and recruiting world since the announcement hit the wire on August 9th. I’m talking about Randstad’s acquisition of the job board, Monster. Monster is being purchased for $429 million. That’s $3.40 per share. What does this mean for HR, job boards and the HR and talent acquisition service industry?
Episode 92: Dissecting the Acquisition of Monster and Its Future in HR Technology with Kyle Lagunas
I’m joined by Kyle Lagunas, a respected talent acquisition and staffing analyst. Kyle breaks down the Monster acquisition and discusses a recent development by a Monster shareholder who is working to block the Monster sale.
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Monster is a household name and has a strong global brand. It has a brand power that is understood, recognized and respected in the advertising world. Kyle says that with the acquisition Randstad, a global RPO firm are getting full ownership and access to that diverse advertising channel.
There’s been a lot of debate around the intentions behind the acquisition and Kyle reminds us that Monster has been shopping itself around to be sold for an extended period of time. The Monster acquisition provides Randstad access to candidate databases, resumes, job posting reporting and intelligence that is contained within its long-standing database. Data after all, Kyle says is the ultimate currency.
Dissecting Both Monster and Randstad’s Acquisition History
Kyle talks through both Monster and Randstad’s other acquisitions. Randstad is an acquisition machine having acquired a number of companies in 2016 including Twango, Careo Group from Japan, Obiettivo Lavro in Italy. Don’t forget their acquisition of RiseSmart, outplacement service and technology in 2015. Monster, also has been active in the acquisition game adding to its suite of products with TalentBin and Jobbr. Randstad because of their history of acquisitions and success, Kyle believes Monster will integrate into their suite of products next year relatively seamlessly. There will be some small bumps for Monster customers but nothing too jarring.
The acquisition impacts not just the job board or talent acquisition industry but also the RPO and staffing markets. Service based companies are moving towards a single platform with a suite of products to serve their client and customer base, into the technology side of the business. Symphony Talent Group did that recently, through their acquisition of QueSocial. They are following in HCM suite products footsteps to offer a complete list of products and services for the entire employee life cycle. These moves are definitely complicating the landscape, especially for service companies who are partnering with or recommending certain products to their clients that are owned by competitor service companies.
Stark Difference Between LinkedIn and Monster Acquisitions
The HR technology space has been busy these last sixty days with two large acquisitions including the Microsoft acquisition of LinkedIn and now Monster by Randstad. It’s an exciting time to be in HR and talent acquisition. Kyle shares with me on the podcast why LinkedIn offers so much more value aside from its earnings. Remember that LinkedIn was acquired for $2.6 billion dollars. If data is the ultimate currency then LinkedIn has far more current information and data Monster. LinkedIn is a professional destination to connect, network and engage not just job search. This is the differentiating factor between the success of LinkedIn.
A recent development that came to light in the form of a press release last week was an announcement by Media News Group who is actively working towards blocking the Monster sale. The job board and newspaper company owns 11.6% of Monster shares. Their press release which is included in the resources listing not only suggests other shareholders to refuse sale but outlines a plan of action for Monster to reduce their expenses by $100-150 million in the next 18 months. How will this move by NMG change the Monster sale? Kyle weighs in on this developing story. Listen to the podcast recording to hear this and more from in our Monster acquisition analysis epsiode.
Connect with Kyle Lagunas on LinkedIn.
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*A special thank you to my production team at Total Picture Radio.