In a surprising move that’s set to shake up the online recruitment industry, two pioneering U.S.-based job board companies, Monster and CareerBuilder, have announced their intention to combine operations.
This strategic merger aims to create a formidable entity capable of challenging current market leaders Indeed and ZipRecruiter.
The news was jointly announced by Randstad, the Netherlands-based staffing giant and parent company of Monster, and Apollo Global Management, the private equity firm that owns CareerBuilder.
Under the terms of the agreement, Apollo will become the controlling shareholder, effectively signaling Randstad’s exit from the job board business.
A New Chapter for Two Industry Veterans
Both Monster and CareerBuilder have rich histories in the online recruitment space.
Monster, founded in 1994 as TheMonsterBoard.com, was one of the first job boards globally and quickly rose to prominence.
CareerBuilder, established in 1995 as NetStart before rebranding in 1998, later overtook Monster as the leading recruitment site in the U.S. during the 2000s.
However, both companies have faced challenges in recent years, losing market share to newer players like Indeed and ZipRecruiter.
This merger represents an opportunity for these former industry leaders to pool their resources and expertise in an attempt to regain their competitive edge.
Consolidating for Strength
While the combined traffic of Monster and CareerBuilder still falls short of market leader ZipRecruiter’s 46 million monthly visits, the merger is expected to solidify their position as the third-largest job board in the U.S., surpassing aggregator Talent.com.
Scott Gutz, CEO of Monster, expressed optimism about the merger, stating, “Through the combination of Monster and CareerBuilder, we bring together two trusted brands and best-in-class solutions to create a stronger job board for our talent and employers.”
Jeff Furman, CEO of CareerBuilder, echoed this sentiment, adding, “We are thrilled to make this announcement; bringing together two industry leaders to create a force in the market.”
Looking Ahead
The transaction is expected to be completed in the third quarter of 2024, subject to customary regulatory approvals. While many details remain to be ironed out, including potential branding decisions and integration plans, the combined entity will be led by senior executives from both companies. As the job market continues to evolve, particularly in the wake of technological advancements and changing work paradigms, this merger represents a significant development in the recruitment industry. It remains to be seen how this new entity will innovate to meet the needs of both job seekers and employers in an increasingly competitive landscape.
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