This is a long-anticipated but still very smart move by Yahoo. HotJobs is not central to Yahoo’s core portal business. This way it gets to unload the costs of maintaining the service, some cash now, and some cash later.
While the sale makes sense, the fact is that Yahoo suffers a big loss with this sale. Yahoo bought HotJobs $436 million in 2002, which means that they are only recouping 51% of their original purchase, not including the above mentioned maintenance costs.
Either way, this will definitely inject some much needed cash into the long struggling Yahoo.
The press release can be found here.