Back in June Monster.com bought a job search app called Jobr. At the time the purchase price was not released.
I have recently learned that they paid $12.5 million dollars.
The info comes from this press release put out by their largest shareholder. (I’ll be writing more about that later)… In any case, thats a lot of scratch for such a young app with a small user base. Jobr’s founders must have been dancing in the streets after negotiating that deal. Kudos to them. They built an app, got a little traction and then hit the jackpot. That’s hard to do in today’s overcrowded app world.
Monster grossly overpaid for this app if you ask their largest shareholder. In fact they called it “wasted” money. Harsh words, but on the face of it they may be right. Monster could have hired their own firm to build something similar for mere thousands. So I guess they value they saw was also the talent being acquired. But that still seems like a lot of money from a purely accounting perspective. Especially from a company (MWW) that is losing money every year. The app itself apparently did not have much revenue.
Here’s the actual quote…
Wasted $12.5 million to acquire Jobr, a start-up mobile app with little revenue or specialized technology — MNG priced out what it would cost to develop virtually the same app as Jobr and believes it would cost less than $250k to develop, or 2% of the price paid to acquire it (quote from Media News Group)