Parent Quits HotJobs Contest, Cedes Field to Yahoo!

28 December 2001

Web portal Yahoo! has scooped from TMP Worldwide without a shot fired in anger.

To the surprise of many onlookers TMP, parent company of the internet’s largest employment listings service, declined to up its agreed offer for Hotjobs – number two in the rankings – after a surprise eleventh hour counterbid by Yahoo [WAMN: 27-Dec-01].

After issuing a terse statement Wednesday that that it would respond to HotJobs' ultimatum [to better Yahoo’s offer by Thursday latest] “at an appropriate time”, TMP waited no more than a few hours to confirm its withdrawal from the contest.

Said Yahoo chairman/ceo Terry Semel: “HotJobs bolsters our listings offering by instantly positioning Yahoo as the number two player in the online recruiting segment, which we believe to be one of the fastest-growing opportunities within online classifieds.”

Yahoo pitched its $10.50 (at current stock prices) cash and stock offer after TMP’s share price faded to $9.19 on Wednesday – well below the $12.20 it commanded when its all-stock offer for Hotjobs was accepted six month s ago.

News source: New York Times