Here’s the news release from CareerBuilder.com, the online job site owned by a trio of major newspaper companies, and now, Microsoft.
Microsoft bought a 4 percent stake in CareerBuilder.com, according to The Associated Press. Newspaper companies Gannett and Tribune each keep their 40.8 percent ownership share, while McClatchy’s share is 14.4 percent.
Yesterday, Bill Gates talked about his friends in the newspaper industry and the “tough, wrenching” changes they are going through as advertising dollars migrate away from traditional media to online sources. Employment listings, once a staple of newspaper classified pages, are one area where online sites such as CareerBuilder.com and its competitors Monster.com and Yahoo! HotJobs have taken away revenue.
In a separate agreement, CareerBuilder extended its relationship with Microsoft’s MSN to be the exclusive provider for its Careers channel through 2013.
Update: The transcript of Gates’ keynote address yesterday sheds some more light on how he’s thinking about classified and employment advertising.
“[I]t’s a very different world. It’s not a world where you have a single person who can deliver things like the classified ads, you have many people competing.
“So it’s fascinating to look at, say, job markets within a city, or the nationwide job markets, and look at to the degree it’s new people who’ve done that well, or it’s traditional media people who have come in. One thing we can say for sure, it’s a far richer experience for the person who has [to] list and find that job, and far more competitive in terms of the rate of innovation that those things are going to take place. So the Internet is like a lot of things, the only sure winner with the breakthrough are the consumers themselves. There will be some companies that do well out of it, but it really, most of it, passes on to simplify things for now the not only hundreds of millions but billions of users who are connected up through these devices.”