Monster Worldwide Inks Deal With Military.com
The impact of bringing home veterans from Iraq, beyond the obvious upside to an ending of hostilities, is expected to impact America’s employment situation; some say dramatically. In answer to these concerns President Obama announced his “Veteran Commitment” initiative which includes the Veterans Job Bank. This bodes well for Monster Worldwide’s (NYSE:MWW) Career Services North America division. By extension, Yahoo (NASDAQ:YHOO) is likely to see some upside as well after 2010’s 3-year partnership between the two companies, as should LinkedIn (NYSE:LNKD).
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Partnership with Military.com Should Drive Much Needed Revenue
The potential of the recently announced agreement with Military.com could be big. According to a survey done by Monster in October, of the tens of thousands of returning veterans only half believe they are prepared to enter civilian life. Of course some veterans will remain in the Armed Forces, but many will not. Those who don’t should benefit from the Military.com arrangement, in turn driving usage and revenue for this all-important division. [1]
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For employers, the opportunity to bring on recently discharged veterans is viewed as largely positive. According to the same Monster poll, 60% of companies intend on hiring veterans and a full 98% of those who have say they would again.
Tax Incentives Should Help Monster
Some icing on the cake for Monster’s push into the military employment marketplace are the tax incentives recently enacted by Congress. These include significant tax breaks for companies that hire veterans; $5,600 for vets and up to $9,600 in tax savings for hiring disabled veterans.
The impact of returning veterans may extend beyond the Career Services North America division too. With big players such as JP Morgan Chase (NYSE:JPM), Delta Airlines (NYSE:DAL) and others saying they intend to hire as many as 100,000 servicepeople in the next 8 years, the Trefis Internet Advertising and Fees division may also see additional revenue. Making up only 5.4% of overall company value, this is an obvious area of potential growth for MWW.
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