Monster Calls Opposition to Company Sale “Reckless”

When Monster’s largest shareholder last week tore into the planned sale of the company calling the price “selling at the bottom,” the response was an official “no comment.” Today, Monster fired back.

In an open letter to shareholders, Tim Yates, Monster’s CEO and CFO and a company director, called last week’s detailed challenge by Media News Group to the $429 million proposed sale of Monster to staffing giant Randstad, “reckless.”

“MNG is not offering you anything for your shares,” Yates writes, boldfacing this part of his letter. “They are asking you to turn down a significant cash premium NOW in the hope of a possibility that your shares may be worth more sometime in the future.

“MNG’s hopes are pinned on incorrect and unsupportable assumptions.”

In four short bullet points, he counters some of the key points that MNG spent nearly 4,000 words detailing:

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  • The expense cuts MNG suggests Yates says are “draconian” and notes Monster’s already cut $100 million over the last several years.
  • Likewise Monster has already cut capital spending in half; what the company spends now is “needed for product enhancements to meet current, intensified competition.”
  • The call for asset divestiture ignores the divestitures already made.
  • And regarding MNG’s call for a more aggressive sales and pricing effort, Yates all but says Monster can no longer be competitive. “MNG ignores that competition is intensifying from companies that are owned by substantially larger and better capitalized parents that can afford to compete aggressively on product pricing in pursuit of market share.”

He also offers an opinion from one investment firm that not going through with the sale would be “disastrous for MWW shareholders.”

Where the letter from Media News Group, one of the nation’s largest newspaper owners, was detailed and included charts and comparisons with other careers publishers, Yates’ letter provided scant financial and competitive specifics. That, he told shareholders, would be forthcoming.


John Zappe is the former editor of and contributing editor of John was a newspaper reporter and editor before transitioning to digital media. In 1994, he launched one of the  first newspaper sites. Before joining ERE Media , John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group where he developed and managed a team of developers, content producers and digital advertising and marketing specialists.

Today, John is a contract writer producing whitepapers, blog posts, thought leadership articles and marketing content and managing  social media programs. He also works with organizations and businesses to assist with audience development and marketing.His website is

In his spare time he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.