In the ever-expanding consolidation of online properties, Internet advertising firm ValueClick Inc. and recruitment Web site Monster.com have been viewed as potential buyout candidates. On Monday, they gained another thing in common: Each reported disappointing earnings. Yet despite that similarity, ValueClick's buyout prospects are waning, while Monster's are heating up.
Shares of ValueClick were down more than 25% midday after the company reported lower-than-expected revenues and earnings and lowered guidance for the remainder of the year. Trading at $19.80 a share, the company’s market capitalization has shrunk to $2 billion, a decrease of $600 million since Friday. While the company may be a lot cheaper Monday, Tech Con would have expected investors to support the company after its initial drop if they truly believed it was in play.
Shares of Monster, meanwhile, were up less than 1% even though it too reported disappointing numbers. Its valuation stood steady at $5 billion after the company said it would undertake a huge restructuring, eliminating 800 jobs, or 15% of its work force. The company said its cost cutting would save it between $150 million and $170 million, making it more appealing to a potential buyer. —David Shabelman
See June 1 Tech Con blog post
See April 12 story in TheDeal.com
Tags: media, deals, acquisition, m&a, mergers, private+equity
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Thanks for your quick bit on VCLK. I'm going to reference your post in my article on VCLK which will post tomorrow (7/31) morning
Let me know what you think,
Zach