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Telecommunications industry

Monster Worldwide Acquires 40% Stake in ChinaHR.com Holdings Ltd.

Strategic Insights

— 2 min read

Monster Worldwide, Inc., the parent company of the leading global online careers property, Monster, announced the acquisition of a 40% stake in ChinaHR.com Holdings Ltd. for $50 million. This strategic move by Monster Worldwide marks its entry into China's rapidly growing recruitment marketplace, which presents a significant opportunity for the company's global growth strategy.

Key Takeaways:

  • Monster Worldwide acquired a 40% stake in ChinaHR.com Holdings Ltd. for $50 million, marking its entry into China's online recruitment market.
  • ChinaHR.com is one of China's leading online recruitment websites, with approximately 3.2 million registered users and over 280,000 corporate clients.
  • The company has a staff of 480 employees and operates in 10 major Chinese cities, with plans for growth in additional markets in the upcoming year.
  • Monster Worldwide will initially occupy three of seven seats on ChinaHR's Board of Directors and has certain rights and obligations to acquire a 51% or more interest in ChinaHR in the event of an initial public offering or 3 years, whichever comes first.
  • Andrew J. McKelvey, Chairman and CEO of Monster Worldwide, stated that the acquisition represents another step in Monster's global growth strategy, leveraging its proven methodologies to capitalize on China's recruitment market opportunity.
  • Kathy Xu, Chairperson of the Board of ChinaHR.com Holdings Ltd., expressed her enthusiasm for partnering with Monster, the global leader in online recruitment, to fully capitalize on the tremendous recruitment market opportunity in China.
  • ChinaHR.com has established relationships with over 100 Chinese colleges and universities and is consistently ranked as the top university student recruiting service.

Statistics:

  • China has a population of 1.3 billion and a per capita net income growth of approximately 6.8% in 2004.
  • The country's economy expanded at a growth rate of 9.5% in 2004, the fastest pace in eight years.
  • Farmers represented 80% of the population 20 years ago, but today that number has fallen to roughly 60-65% as more farmers' sons and daughters settle in urban areas.
  • China's number of newly employed urban residents recently reached 9.8 million, and its urban registered unemployment rate dropped to 4.2% at the close of 2004.
  • China currently has a population of 94 million Internet users.

Sources:

  • Business Wire, "Monster Worldwide Acquires 40% Stake in ChinaHR.com Holdings Ltd." (Feb. 2, 2005)
  • ChinaHR.com, "About Us" (www.chinahr.com)
  • Monster Worldwide, "About Us" (www.monsterworldwide.com)
  • Monster Worldwide, "Press Release: Monster Worldwide Acquires 40% Stake in ChinaHR.com Holdings Ltd." (Feb. 2, 2005)

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