NEW YORK (CNNfn) - Media giant CBS Corp. added to its Internet holdings Wednesday by landing a 38 percent equity stake of employment Web site jobs.com.
In exchange, the privately held jobs.com will receive $62 million in advertising, promotion and "other consideration" over a five-year period. Infinity Broadcasting Corp. (INF), a majority-owned subsidiary of CBS Corp., will receive a pro rata share of the investments and CBS Corp., home of the No. 1 rated CBS television network, will hold two seats on job.com's board.
"The newspaper business will has long been the sole recipient of the $17 billion classifieds advertising market," Mel Karmazin, CBS Corp. president and chief executive officer, said in a statement. "As that revenue is increasingly ceded to the Internet, we believe jobs.com is well positioned to benefit from the transition."
Timothy Armes, founder and president of Dallas-based jobs.com, said the deal "will allow us to reach deep into local markets with traditional advertising opportunities."
CBS also has Internet investments in SportsLine USA Inc. (SPLN), MarketWatch.com Inc. (MKTW), MedScape Inc., Wrenchhead.com Inc. and other properties.
CBS (CBS) was up 5/8 at 47-1/8 in recent trading.