) announced Thursday that it will acquire HotJobs.com (HOTJ
) in a $436 million deal. CIBC World Markets says the deal is positive near term.
Analyst John Corcoran says the acquisition will help Yahoo achieve revenue diversification, with HotJobs likely accounting for 15% of the combined entity's revenue. He notes HotJob's revenues have a higher margin stream than Yahoo's, at 84% vs. Yahoo's 76%. He believes Yahoo's huge user base, one of its core assets, could be a fervent source for HotJob's resumes.
He also expects typical cost savings from the merger. He notes Yahoo has a very big international footprint, while HotJobs does not. He maintains his EPS estimates of $0.05 in 2001 and $0.06 in 2002. He rates the stock a hold.