Will the $1.2 Billion Glassdoor Acquisition Impact its Brand?
Recruit Holdings, the owner of Indeed, will acquire one of the best-known company review sites.
By Danielle Westermann King
Last week came the announcement that Glassdoor was purchased by Japan's Recruit Holdings, which owns Indeed, for $1.2 billion. The announcement noted that Glassdoor, the well-known job board and company-review site, will continue to operate as a distinct and separate part of Recruit Holdings' HR technology business unit. Indeed, which came to prominence as an aggregator of job postings, also features company reviews.
Rumors had long circulated that Glassdoor was preparing for an IPO. However, the debut of Google for Jobs has led to widespread disruption in the recruitment space and poses a significant threat to the business of companies like Glassdoor and Indeed.
Glassdoor CEO and co-founder Robert Hohman said the acquisition would be beneficial for both companies.
"Joining with Recruit allows Glassdoor to accelerate its innovation and growth to help job seekers find a job and company they love while also helping employers hire quality candidates," he said in a statement.
Hohman added that he looks forward to leading Glassdoor through the acquisition and finding new ways to utilize the combined resources from both companies to help job seekers, employees and employers.
Recruit Holdings is a Tokyo-based company that was founded in 1960 and offers platforms on which companies and consumers can connect. Besides its HR tech segment, the company also offers services in recruitment advertisement, employment placement, staffing, housing and real estate, dining and more. It has 45,000 employees and operates in more than 60 countries.
"I am delighted to welcome Glassdoor to the Recruit Group," said Hisayuki Idekoba, COO of Recruit Holdings and CEO of Indeed. "Glassdoor presents a powerful platform that is changing how people find jobs everywhere. [It's] an impressive company with strong leadership, mission, products, clients and employees. We are excited to help them continue to grow and deliver value to the job seekers and employers they serve."
Glassdoor, founded in 2008, currently draws 59 million people to its platform each month. It reports that it hosts rich data (company profiles, reviews, CEO approval ratings, salary information, photos and more) for more than 770,000 companies in 190 countries. It claims to offer recruiting solutions to 40 percent of the Fortune 500.
This acquisition has interesting possibilities that could either benefit the brand or hurt it.
According to Brian Kropp, group vice president of Gartner HR practice, Glassdoor has become an objective source for candidates and employees to learn about potential employers or even current ones.
"In the short run, [the acquisition will have] little impact on the brand," says Kropp. "However, if the services that are offered through Glassdoor become more focused on delivering on the needs of HR executives and recruiters, then they run the risk of becoming a less-valuable platform that becomes candidate- and employee-unfriendly."
The deal is set to finalize over the summer and must meet regulatory approvals and closing conditions.