FLN Takeover, page-59

From today's AFR:

'Citibank retained its 'sell' rating on Seek, while reducing its 12-month price target to $15.85 from $17.65, citing Australia's slowing jobs market. Analyst David Kaynes also cut his estimates for 2020-21 by 5 per cent on the basis that Australian job ads are declining. Mr Kaynes said Australian job ads declined for a third consecutive month in January, with the rate of decline accelerating in early February. He believed this trend was the start of a sustained downturn and given that employment cycles are rarely short, to expect at least 18 months of declines. Mr Kaynes said the margins from Seek's international businesses are insufficient to offset the earnings impact of a decline in Australia.'

Would Seek consider FLN to add flexibility to its earnings?

Slowing job ads offset by potentially very large on-demand labour market (Source: Hedgeye Risk Management, 11/2/19)

FLN could also benefit with new sets of eyes on its various platforms. Cost savings may also be possible.

A scrip deal could be an option. Seek last traded at $16.73ps / Mkt Cap $5.9 billion.

DYOR

PS: UPWK now has a Mkt Cap of ~ US$2.5  billion/ ~ A$3.5 billion; 11x FLN!