By: Jennifer Saba
Analysts see few, if any, downside to The New York Times Co.’s Wednesday announcement that the company is teaming up with recruitment site Monster.com.
“We believe the recruitment ad alliance between New York Times and Monster Worldwide will be a net positive for both firms,” wrote Goldman Sachs analyst Peter Appert.
Monster will provide a co-branded help-wanted classified site for 19 of the New York Times properties. While the details were scarce, analysts think the deal will work like Monster’s other newspaper partnerships where visitors of the newspapers “interface” with Monster.com.
John Janedis, a senior analyst at Wachovia Equity Research, estimates the New York Times online help-wanted ad revenue totaled $48 million in 2006. Assuming that Monster’s cut could be 10% to 15% for selling ads, Monster could stand to net between $5 million and $8 million.
Appert wrote: “The most positive takeaway, in our view, is the clear evidence of a cultural shift taking place at Monster, as the company shows a refreshing willingness to broaden its reach through partnerships with local media firms.”
On the Times’ end, the company gets access to a broader suite of recruitment products to sell and improved technology, noted Goldman Sachs.
With this deal, Monster’s newspaper alliance has grown to total 60 dailies, including The Philadelphia Inquirer, Daily News, and The Orange County (Calif.) Register.