Online Technology September 2000
Knight Ridder,
Tribune team up to buy recruitment Web sites
Envisioning
a comprehensive local and national recruitment network, Knight Ridder and
Tribune Co. announced an agreement to acquire CareerBuilder Inc. for $8
per share in cash, or approximately $200 million, as well as
CareerPath.com for an undisclosed amount.
Combining the best from both worlds, CareerBuilder Inc. will provide its e-cruiting technology, talent and syndicated career network that boasts local Knight Ridder and Tribune market strength, while CareerPath contributes its content and audience reach.
The goal is to establish a targeted online career one-stop solution marketplace.
It is expected, according to CareerPath, that the two online recruiting companies will merge to form a privately held, independent company managed by CareerBuilder.
“The online recruitment business is a multimillion-dollar industry with explosive growth,” said Rob McGovern, chairman and chief executive officer of CareerBuilder. “Forrester Research predicts that online classifieds will increase from $1.2 billion of online ad spending in 2000 to $8.2 billion by 2005. Recruitment classifieds count for 50 percent of that growth.”
The merger is subject to the closing of the CareerBuilder acquisition and other customary conditions, including Hart-Scott-Rodino clearance.
Under the HSR Act, companies involved in mergers and acquisitions are required to notify federal antitrust agencies of the transaction and delay closing for 30 days, 15 days for a cash tender offer, while the Federal Trade Commission or Department of Justice evaluate the proposed transaction.