The announcement by Monster’s CEO caused its stock price to spike, after falling by half in the last 12 months. In the meantime, Monster has retained corporate finance advisers, according to Dealbook in a later report. There was no mention of private equity stepping up as a potential buyer.
The growth of social media startups such as Facebook and LinkedIn threaten the Monster.com business model as they step up their potential to offer members job search features, according to an analysis published by Reuters late last last year. Stock market investors are choosing social media and so-called Web 2.0 stocks over more traditional online business models.
A case in point, money-losing consumer-generated review website, Yelp, which went public last week and is now worth about USD 1.47 billion or 17 times its 2011 revenue, according to Reuters. The same article suggests that investors here are also speculating that Yelp will be a takeover target for the likes of Google or Yahoo.