Monster Says Strategic Review Remarks Got Positive Feedback
Monster Worldwide Inc. (MWW) Chief Executive Officer Sal Iannuzzi said his remarks last week about the online-recruiting service’s pursuit of strategic alternatives have received “positive attention” and the business model isn’t in danger.
“We will continue to take all appropriate measures to maximize shareholder value, but it is imperative that you understand our business model is not in jeopardy,” he wrote in a memo obtained by Bloomberg News today. “We have made the investments and delivered the products to our customers that will allow us to thrive for years to come.”
Monster this week hired bankers to review its strategy after losing market share to sites such as LinkedIn Corp. (LNKD) Tobey Sommer, an analyst at SunTrust Robinson Humphrey Inc. in Nashville, has said selling itself may be one option and a buyer would benefit if the U.S. starts to add lower-paying jobs.
Iannuzzi earlier this year said he would cut 400 jobs, or about 7 percent of New York-based Monster’s workforce, after the European economic crisis led users to visit the job-search site less often.
Monster’s shares jumped more than 15 percent the day Iannuzzi first made the remarks and gained 5.8 percent to $9.11 today at the close in New York. They’ve tumbled 40 percent in the past 12 months.
A takeover could generate as much as $100 million in cost savings, mostly from general and administrative, corporate and marketing expenses, Sommer said this month.
Monster hired Stone Key Partners LLC and Bank of America Corp.’s Merrill Lynch to review its strategy, it said.
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