Summary

Other Scenarios:

Buyer: Monster Worldwide, Inc. (MWW) Last Price: 7.22 Market Cap.: 932.68M
Target: 51job, Inc. (ADR) (JOBS) Last Price: 44.54 Market Cap.: 1.26B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Business and Public Services 611
Business Services 228
Administrative/Support Services 48
Administrative Services 27
Consumer 895
Consumer Products and Services   341
Consumer Services   50
Educational Services   31
Media 140
Electronic Media 63
Consumer Content 45
Print   20
Publishing   17

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 17)
  • Trovix.com
  • Affinity Labs
  • ChinaHR
  • JobKorea.com.kr
Target (Total: 11)
  • 51jobs HR Forum
  • 51job eHire
  • www.51job.com
Buyer
  • Emailjob.com
  • Jobs.com
  • Monster.com
  • JobKorea.com.kr
Target
  • 51job HR Outsourcing
  • 51job HR Research Center
  • www.51job.com
  • 51job Campus Recruitment

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 2)
  • Yahoo! Inc. (YHOO)
  • 21Vianet Group Inc (VNET)
Target (Total: 0)

n/a
Buyer (Total: 0)

n/a
Target (Total: 0)

n/a

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 6,042 4,354
Revenue Per Employee 185,009.0 45,490.0
Total Revenue 250.0 326.0
Total Expenses 233.0 213.8
Other Revenue n/a n/a
Cost of Revenue 110.9 89.9
SG&A Expense 100.6 124.0
Research & Development n/a n/a
Other Operating Expense n/a n/a
Operating Income 17.0 112.2
Unusual Income 3.2 n/a
LT Debt to Capital n/a n/a
Fwd P/E 25.45 17.92
Fwd P/Rev 0.96 5.24
Book Value 1,164.1 1,978.1
Curr Portion of LTD/Cap Lease 40.0 n/a

Individual Company Summary

Focused

Buyer

Focused (): Consumer > Media > Electronic Media > Consumer Content > Information and News > Classifieds and Directories > Career

Target

Focused (): Consumer > Media > Electronic Media > Consumer Content > Information and News > Classifieds and Directories > Career

Business Description

Buyer

Monster Worldwide, Inc. (Monster) provides global online employment solution. With a presence in approximately 55 countries globally, including key markets in North America, Europe, Asia and Latin America, Monster offers online recruiting solutions. Through online media sites and services, Monster Worldwide delivers targeted audiences to advertisers. The Company operates in three segments: Careers - North America, Careers - International and Internet Advertising & Fees. During the year ended December 31, 2010, these operating segments represented approximately 46%, 40% and 14% of its consolidated revenue, respectively. On August 24, 2010, Monster completed the acquisition of Yahoo! HotJobs from Yahoo!. On December 31, 2010, the Company completed the acquisition of JobBusan, a business that provides online recruiting in Busan, South Korea.

Target

51job, Inc. is a holding company. The Company is a provider of integrated human resource services in China. As of December 31, 2010, the Company operated print publications across 15 major cities in China. In addition to recruitment advertising services, it also provides other complementary human resource related services, consisting primarily of business process outsourcing, training and executive search services. It receives a majority of its revenues in the form of fees from employers for placing job advertisements on 51job Weekly and www.51job.com. It also receives fees from employers for accessing its www.51job.com resume database, using its eHire product and engaging its other human resource related services. 51job, Inc. provides a range of human resource services in categories, which includes recruitment advertising services and other human resource related services.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 54.46 71.51
Operating Margin % 7.36 33.34
Quick Ratio 0.76 4.72
Current Ratio 0.86 5.29
Coverage Ratio n/a n/a
Total Assets 2,058.0 2,393.9
Return on Equity % 18.91 27.28
Return on Assets % 10.7 22.54
Cash+ ST Inv. Per Share 2.04 32.44
Total Debt 223.8 0.0
Total Debt to Equity % 19.23 0
Total Debt to Tangible Equity % n/a 0
Debt to Asset % 10.88 0.00

Product Summary

Sector Buyer Target
Business and Public Services
Business Services
Administrative/Support Services
Services targeted toward the day-to day administrative function of businesses (and in some cases, homes), and other services, including janitorial and linen services; security services; and building maintenance services.
Consumer
Consumer Products and Services  
Consumer Services
The Consumer Services sector is comprised of services targeted toward consumers, which include educational services (e.g. colleges); personal services (e.g. hair salons and photography services); Automotive maintenance/repair services; death care services.
  
Media
Electronic Media
The Electronic Media sector focuses on content delivered electronically, primarily over the Internet, and comprises both online publishing intended for end users, and services providing data feeds for other electronic publishers and Web sites. (The online presences of companies delivering content primarily via Television, Radio, and Print are generally not included.) Does not include trade name delivered via mobile devices, if this content is also offered primarily via the internet.
Print
The Print sector is comprised of companies engaged in the business of print circulation, including books, classified publications, directories, magazines, newspapers, shoppers, and trade journals.
  

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
Business and Public Services
Business Services
Administrative/Support Services
Administrative Services
Employment Services
Human Resources Consulting and PEO Services  
Benefits Administration
Includes companies that provide benefits administration (health, retirement, etc.) and related services, such as unemployment and workers? compensation services.

Target Products:

  • 51job HR Outsourcing
  
Human Resources Consulting
Consulting services related to benefits, compensation, labor issues, personnel management, and other HR issues. Executive search consulting is covered under Placement Services.

Target Products:

  • 51job HR Research Center
  • www.51job.com
  • 51job Campus Recruitment
  • 51job HR Outsourcing
  
Payroll Services
Outsourced service where the provider administrates a company's payroll. Services include paycheck allocation and tax processing/withholding.

Target Products:

  • 51job Business Process Outsourcing
  • 51job HR Outsourcing
  
Placement Services
Executive Search Consulting Services
Providing high-level managerial/executive candidates for employers. Also includes related leadership/executive consulting services.

Target Products:

  • eSearch
  
Staffing Services
Employment placement services for temporary/contract positions, as well as full-time positions. Healthcare related staffing services are covered in the Healthcare Branch of the Revere Hierarchy.

Buyer Products:

  • Emailjob.com
  • Jobs.com
  • Monster.com
  • JobKorea.com.kr
  • JobsAhead.com

Target Products:

  • 51job HR Research Center
  • www.51job.com
  • 51job HR Outsourcing
Consumer
Consumer Products and Services  
Consumer Services  
Educational Services  
Post-Secondary  
Professional Advancement
Includes professional advancement and non-degree job-specific training programs, such as mechanic, nursing assistant/technician; professional advancement courses; as well as personal interest education, such as investing/art/and other technical education.

Target Products:

  • 51job Outbound Training
  • 51job Training
  
Media
Electronic Media
Consumer Content
Communication and Collaboration  
Social Networking
Websites which offer social networking, as well as event invitation services.

Target Products:

  • 51jobs HR Forum
  
Information and News
Classifieds and Directories
Career
Resource which allows job seekers to find suitable employment positions.

Buyer Products:

  • Trovix.com
  • Affinity Labs
  • ChinaHR
  • JobKorea.com.kr
  • Monster.com
  • Jobs.com
  • FlipDog.com

Target Products:

  • 51job eHire
  • www.51job.com
Demographic Specific  
Women
Websites that are specifically oriented towards women's issues.

Buyer Products:

  • CinCHouse.com
  
Education  
Higher Education
Content targeted toward higher education students and instructors.

Buyer Products:

  • Education.org
  • FinAid.org
  • MonsterLearning.com
  • MakingItCount.com
  • EduPass.org
  • FastWeb.com
  
Web Navigation  
Portal
Portals are destination sites that aid users in navigating the World Wide Web. Incorporating both Search Engines and Directories, these sites act as all-inclusive starting points for the web, usually offering additional services such as news, shopping, e-mail/instant messaging, online games, and clubs/groups.

Buyer Products:

  • Military.com
  
Print  
Publishing  
Newspapers  
International  
Asia/Pacific
Newspapers published in Asia.

Target Products:

  • 51job Weekly
  

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Google Inc. n/a 195,640.947 18.49 16.77 3.52 5.51 3.97
Reed Elsevier NV (ADR) n/a 23,012.850 39.93 10.74 4.75 2.58 14.73
Reed Elsevier plc (ADR) n/a 16,192.431 26.65 11.33 3.17 1.79 9.43
Linkedin Corporation n/a 8,660.624 741.07 263.41 14.06 8.79 14.32
The Washington Post Company n/a 3,085.481 16.78 33.39 0.48 0.79 5.03
51job, Inc. (ADR) n/a 1,260.075 7.30 17.92 2.70 5.24 0.64
DICE HOLDINGS, INC. n/a 594.861 17.77 15.63 3.32 3.05 n/a
WebMediaBrands Inc n/a 31.938 n/a n/a 2.72 n/a n/a
Workstream Inc n/a 2.630 n/a n/a 0.16 n/a n/a
Target
  NetEase.com, Inc. (ADR) n/a 6,319.220 0.67 11.16 2.33 4.75 0.52
SINA Corporation (USA) n/a 4,290.556 n/a 62.91 9.34 7.23 4.19
Sohu.com Inc. n/a 1,950.932 10.23 12.79 1.90 1.87 2.33
Monster Worldwide, Inc. n/a 932.682 17.49 25.45 0.90 0.96 n/a
Seek Ltd n/a n/a n/a n/a n/a n/a n/a
Tencent Holdings Ltd n/a n/a n/a 23.53 n/a n/a n/a
Guangzhou Daily Newspaper Group n/a n/a n/a n/a n/a n/a n/a
Government - China n/a n/a n/a n/a n/a n/a n/a
Shenzhen Press Group n/a n/a n/a n/a n/a n/a n/a
Jobs DB, Inc. n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Yahoo! Inc. n/a 20,378.558 20.01 19.51 4.09 4.56 2.43
21Vianet Group Inc n/a 643.956 n/a 37.44 9.40 2.87 3.08

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  News Corp n/a 52,143.826 10.05 14.46 0.89 1.53 12.54
Yahoo! Inc. n/a 20,378.558 20.01 19.51 4.09 4.56 2.43
Cavium Inc n/a 1,615.105 35.99 -1,701.50 6.15 6.35 10.72
Cornerstone OnDemand Inc n/a 869.489 n/a -87.90 10.27 7.77 14.23
Media General, Inc. n/a 109.011 n/a n/a 0.18 n/a n/a
Workstream Inc n/a 2.630 n/a n/a 0.16 n/a n/a

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 1,040.1 466.1 1,506.2
Other Revenue n/a n/a n/a
Total Revenue 1,040.1 466.1 1,506.2
Cost of Revenue 473.7 132.8 606.5
SG&A Expense 446.4 175.6 621.9
Depreciation & Amortization 55.8 n/a 55.8
Interest Expense n/a n/a n/a
Other Operating Expense n/a n/a n/a
Unusual Expense (Income) 5.2 2.3 7.5
Total Expenses 963.6 310.7 1,274.3
Operating Income 76.5 155.4 231.9
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -3.1 2.4 -0.8
Other, Net n/a 0.6 0.6
Income Before Taxes 73.4 166.9 240.3
Income Taxes 18.4 32.0 50.3
Income After Taxes 55.0 134.9 190.0
Equity in Affiliates -1.2 n/a -1.2
Net Income - Excl. Xord. Items 53.8 134.9 188.7
Net Income - Incl. Xord. Items 53.8 134.9 188.7
Income Avail. to Common 53.8 134.9 188.7
Share Items
Basic Avg. Shares Outstanding 121.4 56.8 178.2
Basic EPS - Excl. Xord. Items 0.44 2.38 1.06
Basic EPS - Incl. Xord. Items 0.44 3.04 1.06
Full Dilution Adjustment n/a n/a n/a
Fully Diluted Shares Outstanding 122.7 59.2 181.9
F.D. EPS - Excl. Xord. Items 0.43 2.92 1.04
F.D. EPS - Incl. Xord. Items 0.43 2.92 1.04
Balance Sheet
Assets
Cash and Equivalents 250.3 752.5 1,002.8
ST Investments n/a 1,166.9 1,166.9
Accounts Receivable 343.5 34.4 378.0
Inventory n/a n/a n/a
Prepayments and Advances 82.1 212.9 295.0
Other Current Assets n/a 21.8 21.8
Current Assets 675.9 2,188.6 2,864.5
PPE 529.9 n/a 529.9
Accum D&A -374.2 n/a -374.2
PPE, Net 156.3 193.1 349.4
Goodwill & Intangibles 1,184.1 4.6 1,188.7
Long Term Investments 1.2 2.4 3.6
Other Assets n/a n/a n/a
Other LT Assets 40.5 7.6 48.1
Total Assets 2,058.0 2,393.9 4,451.9
Liabilities
Accounts Payable 33.2 15.8 49.0
Payable/Accrued 213.8 35.9 249.7
Accrued Expenses 155.5 38.0 193.5
ST Debt 148.8 n/a 148.8
Curr Port of LTD & Cap Lease Oblg 40.0 n/a 40.0
Other (Current) Liabilities 380.3 324.3 704.6
Current Liab. 783.0 414.0 1,196.9
LT Debt 35.0 n/a 35.0
Total LT Debt 35.0 n/a 35.0
Deferred Taxes 8.7 1.9 10.6
Other LT Liab. 110.9 n/a 110.9
Total Liabilities 893.9 415.8 1,309.7
Shareholders Equity
Common Stock 0.1 0.0 0.2
Additional Paid in Capital 1,405.9 1,048.3 2,454.2
Retained Earnings -305.7 928.1 622.5
Other Equity 63.7 1.6 65.3
Total Equity 1,164.1 1,978.1 3,142.2
Total Liab. & Equity 2,058.0 2,393.9 4,451.9
Shares Outstanding 128.8 56.9 185.8
Cash Flow
Operating Cash Flow
CF Net Income 53.8 n/a 53.8
CF Depreciation 74.6 n/a 74.6
CF Deferred Taxes -5.7 n/a -5.7
Other Non-Cash Items 45.5 n/a 45.5
Change in Working Capital -18.6 n/a -18.6
Total Cash From Operating Activities 149.7 n/a 149.7
Investing Cash Flow (not calculated)
Capital Expenditures -61.8 n/a -61.8
Other Investing Cash Flows -0.4 n/a -0.4
Total Cash From Investing Activities -62.2 n/a -62.2
Financing Cash Flow (not calculated)
Dividends Paid n/a n/a n/a
Purchase Or Sale of Stock -41.9 n/a -41.9
Purchase and Retirement of Debt 64.2 n/a 64.2
Other Financing Cash Flow -17.1 n/a -17.1
Total Cash From Financing Activities 5.1 n/a 5.1
Exchange Rate Effects -5.5 n/a -5.5
Net Change in Cash 87.1 n/a 87.1
Cash Taxes Paid -4.8 n/a -4.8
Cash Interest Paid -2.1 n/a -2.1