Walla Communications (TASE: WALA) is continuing its acquisitions in the local Internet market. After announcing the acquisition of the controlling stake in social network "Mekusharim" earlier this week, the company announced today that it had acquired 50% of job search site MSN Israel Jobs, after Microsoft pulled out of the venture, which it jointly owned with Redmatch.
Walla said it had undertaken to license the new venture under the name "Walla Jobs" and invest NIS 3.5 million in an advertising campaign that will promote the brand from within the Walla portal. Walla is making the investment as a strategic partner, with the aim of strengthening both the brand and, as a result, also the Walla portal itself.
The Walla job search site will offer fee-based advanced job placement and premium services, powered by technology developed by Redmatch. The site will go online within a month. Gilad Ayalon, currently the CEO of MSN Israel Jobs, has been appointed CEO of the new venture.
This deal demonstrates that Walla is continuing its attempts to gain a solid foothold in every possible market segment, in the course of its rivalry with Ynet for control of the portals market. A recent survey by job search site Alljobs reveals that 85% of help-wanted ads are published online, and Walla apparently understands that it cannot afford not be part of this growing market.
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2008
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