Asian leading job portal, Jobstreet acquired a 20.07% stake in Malaysia-based digital ad service provider, Innity, in early of July. The announcement was unexpected and it has created lots of discussions in the Internet industry in Malaysia.
Why did Jobstreet acquire stake in Innity? Why Innity? Why online ad? Below are few of my observations:
- Jobstreet has always been trying to go beyond online job market. LinaAlert is a online classifieds service they launched few years back but it was not a big hit such as Mudah.com.my which was lately launched. Jobstreet is very "hungry" for expansion.
- Innity has been expanding their online ad business regionally while entering to the markets such as Vietnam, Singapore etc. This is "in sync" with the regional strategy Jobstreet is always practicing.
- Jobstreet's growth may have hit to the ceiling with the existing businesses. They can gain further growth via Innity's deal as they are entering to a new business.
- Being a not-so-small shareholder of Innity, Jobstreet could work closely with Innity to provide an end-to-end online solution to their existing enterprise clients such as Intel, Shell etc. What they can provide is not only an online/offline recruitment solution but also bundle with online ad solution for their clients.
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