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Looks Like Jobing.com Will Buy Anything…
Phoenix-based Jobing.com has acquired WorkMetro, a job board that operates 22 local job boards, mostly in the East Coast. WorkMetro was funded by Bessemer Venture Partners and Jafco Ventures who had invested an undisclosed amount of capital in a first round investment in 2006. Terms of the sale to Jobing were not disclosed, but it was revealed that WorkMetro generated annual revenue of about $4.5M.
In preparation for the acquisition, WorkMetro laid off about 20 people in late December or early January, roughly half its workforce. Those disgruntled employees left a series of comments on a discussion thread on a blog post by Cheezhead earlier this year which paints a pretty ugly picture of the condition of WorkMetro. It’s an extremely entertaining read, and if even half of the comments are anywhere near the truth, I’d say that Jobing has an absolute disaster on its hands with this acquisition. Clearly, I have no idea how many WorkMetro employees Jobing will keep around, how many of WorkMetro’s employer advertisers will switch over to the new company, or what type of jobseeker traffic the 22 sites were generating or will generate for Jobing. But if internal dealings are any indication of external success, it’s safe to assume that extracting any value from this deal will be challenging at best. Then again, perhaps Bessemer and Jafco were just happy to get anything they could for this seemingly abysmal, horrendously mismanaged company and they may have ended up essentially giving it away. In that case, maybe Jobing scooped up something for nothing. We’ll see.
[tags]WorkMetro, Jobing.com, Job Boards, M&A Activity in the Recruiting Space, Deal Activity in the Recruitment Advertising Industry, Consolidation of Job Boards, Disastrous Acquisitions, Jobing Arena – Home of the Phoenix Coyotes[/tags]