Will the $1.2 Billion Glassdoor Acquisition Impact its Brand?
Yesterday it was announced that Glassdoor was purchased by Japan’s Recruit Holdings for $1.2 billion, which also owns Indeed. In the announcement it was clear that Glassdoor, the well-known job board and recruiting company, will continue to operate as a distinct and separate part of Recruit Holdings HR technology business unit.
“Glassdoor has transformed how people search for jobs and how companies recruit,” said Robert Hohman, CEO and co-founder of Glassdoor. “Joining with Recruit allows Glassdoor to accelerate its innovation and growth to help job seekers find a job and company they love while also helping employers hire quality candidates.”
Hohman added that he looks forward to leading Glassdoor through this acquisition and finding new ways to utilize the combined resources from both companies to help job seekers, employees and employers (once the job offer has been accepted).
Recruit Group is a Tokyo-based company that was founded in 1960 and offers platforms on which companies and consumers can connect. Besides its HR tech segment, Recruit Group also offers services in recruitment advertisement, employment placement, staffing, housing and real estate, dining and more. It has 45,000 employees and operates in more than 60 countries.
“I am delighted to welcome Glassdoor to the Recruit Group,” said Hisayuki Idekoba, COO of Recruit Group and head of its HR technology segment. “Glassdoor presents a powerful platform that is changing how people find jobs everywhere. [It’s] an impressive company with strong leadership, mission, products, clients and employees. We are excited to help them continue to grow and deliver value to the job seekers and employers they serve.”
Glassdoor was founded in 2008 and now draws 59 million people to its platform each month. It reports that it hosts rich data (company profiles, reviews, CEO approval ratings, salary information, photos and more) for more than 770,000 companies in 190 countries. It claims to offer recruiting solutions to 40 percent of the Fortune 500.
This acquisition has interesting possibilities that could either benefit the brand or hurt it.
According to Brian Kropp, group vice president of Gartner HR practice, Glassdoor has become an objective source for candidates and employees to learn about potential employers or even current ones.
“In the short run, [the acquisition will have] little impact on the brand,” says Kropp. “However, if the services that are offered through Glassdoor become more focused on delivering on the needs of HR executives and recruiters, then they run the risk of becoming a less valuable platform that becomes candidate and employee unfriendly.”
The deal is set to finalize over the summer and must meet regulatory approvals and closing conditions.