AOL Buys Huffington Post for $315 Million
HuffPo founder Arrianna Huffington will take over AOL edit operations.
One week after Newsweek and The Daily Beast announced their merger, AOL has announced that it will buy The Huffington Post for $315 million.
Huffington Post founder Arrianna Huffington will take over AOL editorial operations going forward and AOL sites such as Politics Daily and Daily Finance could be shut down, with writers transferring to Huffington Post, according to The New York Times.
While AOL’s recent content strategy has emphasized, quick, low cost editorial through initiatives such as local news network Patch, it’s also made several recent high profile content acquisitions, including TechCrunch and video distribution company 5min media.
The Huffington Post generated $30 million in revenue and 26 million unique users in 2010, according to comScore. In a conference call with analysts, AOL CFO Arthur Minson said Huffington Post could generate $50 million in revenue in 2011. Meanwhile, AOL cut an estimated 2,500 jobs last year, according to The New York Times.
The deal "will create a next-generation American media company with global reach that combines content, community, and social experiences for consumers," said AOL CEO Tim Armstrong in a statement.