What: Shares of Monster Worldwide, Inc. (NYSE: MWW) were flying higher today after the company reported second-quarter earnings and agreed to be acquired by Randstad. As of 1:53 p.m. EDT, the stock was up 26.4%.
So what: Dutch staffing company Randstad agreed to purchase its American rival for $429 million, or $3.40 a share, bringing a coda to a company that was once synonymous with online job searching, but in recent years has lost relevance to competitors such as LinkedIn. Meanwhile, the stock had also faded as the company lost its market leadership. Monster CEO Tim Yates said of the deal, "Joining Randstad provides a unique opportunity to accelerate our ability to connect more people to more jobs."
As for the quarter gone by, Monster saw revenue slide 10% and reported a loss of $1.40 due to a goodwill impairment charge, a reflection of its ongoing challenges. Adjusted for the impairment charge, the company reported a loss of $0.02.
Now what: Considering Monster stock has been flagging for several years, an acquisition seems like the best outcome for investors. In fact, the company was trading slightly above Randstad's buyout price, indicating that some believe a better offer could emerge.
As for the deal itself, the transaction is expected to be immediately accretive to Randstad's earnings and it is expected to close in the fourth quarter of this year, pending regulatory approval.