| April 5
April 5 Private equity firm GTCR LLC is in
exclusive talks to acquire U.S. job-hunting website
CareerBuilder LLC for more than $1 billion, according to people
familiar with the matter, in what would be the latest deal in
the online recruitment sector.
The sale would allow CareerBuilder's owners - TV station
operator Tegna Inc, broadcasting company Tribune Media
Co and newspaper group The McClatchy Co - to
cash out from what they regard as a non-core business.
GTCR has prevailed in an auction for CareerBuilder, and is
in the process of trying to finalize the terms of a deal, the
people said this week, cautioning that it is still possible that
the negotiations end without an agreement.
The sources asked not to be identified because the
negotiations are confidential. Tegna and Tribune Media declined
to comment, while GTCR, CareerBuilder and McClatchy did not
respond to requests for comment.
The potential deal for CareerBuilder comes as many popular
job websites become acquisition targets amid challenges in
translating user growth into profits. Last September, credit
ratings agency Moody's Investors Service Inc called
CareerBuilder's operating performance "weak".
In examples of other deals in the jobs website sector,
Microsoft Corp acquired LinkedIn Corp for $26.2 billion
last December, while Randstad Holding NV took over
Monster Worldwide Inc for $429 million in November.
DHI Group Inc, the operator of the information
technology and engineering job website Dice, said in November it
was carrying out a review to explore strategic alternatives.
Tegna announced last year that it would explore options for
its 53-percent stake in CareerBuilder, and said it expected to
complete its strategic review in the first half of 2017. It also
said it would spin off its auto-sales website Cars.com. These
two businesses represent close to 40 percent of Tegna's revenue
CareerBuilder generated revenues from its subscription
offering of $162 million in 2016, up 8 percent from 2015,
according to regulatory filings. The vast majority of its
revenue is in the United States.
CareerBuilder has been expanding into new areas in recent
years. Last year it bought Aurico, a background screening and
drug testing service for an undisclosed sum. It also acquired a
75-percent stake in WorkTerra, a maker of software for benefits
Tegna has said that any proceeds from a sale of
CareerBuilder would provide it with "even further financial
(Reporting by Liana B. Baker in San Francisco and Greg
Roumeliotis in New York; Editing by Nick Zieminski)