Facebook Jobs Is The Next Big Threat To LinkedIn

by Trefis Team
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Facebook (NASDAQ:FB) is apparently working on a job postings board that it will launch later this summer, according to a report by the WSJ. “Facebook Jobs” will be an aggregator which pulls in job postings by third party providers and makes them available in one place, and creates a searchable database of jobs for users to browse. Facebook could also use the tons of social data it has on each user to target relevant jobs across its vast network of users. It could provide an excellent recruiting solution to corporate clients and placement agencies, which will compete directly with LinkedIn (NASDAQ:LNKD). [1] 

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We have already seen how Facebook’s social graph can be leveraged by job posting and recruitment apps like BranchOut, JobVite and Glassdoor. These apps have attracted millions of users in months, thanks to the inherent virality of the network. Facebook is not cutting them off, but partnering with them to become a comprehensive social recruitment solution.

While Facebook plans to use the job postings service to rack up engagement metrics initially, it could definitely look to monetize it eventually. This could open up yet another revenue source for Facebook, which is dependent primarily on social ads and virtual payments at present.

Facebook has more than 900 million monthly active users, while LinkedIn has close to 150 million. If Facebook does this right, it could take away a major portion of recruitment dollars away from LinkedIn. This could be one of biggest threats that LinkedIn has faced until now.

LinkedIn, beware.

We currently have a $33 Trefis price estimate for Facebook, which stands just above its market price.

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Notes:
  1. FINS: Facebook to Launch Job Postings Board–Sources, WSJ []
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  • commented 2 years ago
  • tags: YHOO LNKD FB MWW GOOG
  • I really like this move for Facebook. This is a great way to create another potentially large income stream, though there will certainly be some challenges in the execution - will users be able to set up their profile to read like a resume, like Linkedin? Can a user segregate their regular profile from what employers will see?

    Overall, I'm surprised LNKD is down only ~5.3% today.