CareerBuilder Inc. (Nasdaq: CBDR) teamed with Microsoft Corp.'s (Nasdaq: MSFT) MSN online service Monday to develop a job search area at the Web portal. The collaboration is part of Microsoft's $18.2 million investment in the company.
Shares of CareerBuilder jumped 2 3/8 to 14 3/4 in early trading. CareerBuilder went public earlier this month and fell below the offering price of $13.
The Microsoft pact builds on the software giant's 6 percent interest in CareerBuilder. Earlier this month, Microsoft paid $18.2 million for 1.4 million shares, or $13 a share, according to a filing with the Securities and Exchange Commission. Microsoft also has a warrant to buy another nearly 900,000 shares at $13 each, which could raise its stake in the firm to about 10 percent.
The MSN online service gets about 28 million visitors a month.
CareerBuilder provides online job recruiting services with its network of more than 550 subscriber customers and 18 media companies' Web sites. CareerBuilder competes with the Monster Board, Career Mosaic as well as services at Web portals, such as AOL.com.
Online spending by employers is expected to grow to $1.7 billion by 2003 from $105 million last year. Consultant Hunt-Scanlon Advisors sees the online recruiting industry could swell to $5.1 billion in 2003 from $250 million in 1999.
CareerBuilder went public on May 12, pricing its 4.5 million shares at $13 a share. Shares received muted response in its first day trading, rising to a high of $20 a share.
Shares closed at 12 3/8 on Friday, down 1/2.
-Reuters contributed to this report.