AOL Buys Huffington Post For $315 Million, Creating ‘Huffington Post Media Network’

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by Frances Martel | 1:06 am, February 7th, 2011

» 45 comments

AOL and The Huffington Post have a major announcement to make tonight: they are now a happily married online content monolith. The surprise news– announced shortly after the end of the Super Bowl– makes HuffPo head Arianna Huffington president and editor-in-chief of both HuffPo and the entire AOL site network.

The two companies announced the content merger tonight in an extensive press release, detailing the extent to which this would increase the size of both to a combined 270 million unique visitors a month and create a network that combines the Post with all current AOL blogs and content providers, including, among others, Engadget, TechCrunch, Moviefone, MapQuest, Black Voices, PopEater, and AOL Music. Huffington explained the rationale and expectations she has for her new network:

“This is truly a merger of visions and a perfect fit for us,” said Huffington. “The Huffington Post will continue on the same path we have been on for the last six years – though now at light speed – by combining with AOL. Our readers will still be able to come to the Huffington Post at the same URL, and find all the same content they’ve grown to love, plus a lot more – more local, more tech, more entertainment, more finance, and lots more video. We are fusing a legendary and powerful new media brand with a vibrant, innovative news organization, known for its distinctive voice, a highly engaged audience, an expertise in community-building, and a track record for demystifying the news and putting flesh and blood on the data while drawing our audience into the conversation.”

Watch Kara Swisher‘s interview with Huffington and Armstrong below, followed by the full press release:

New York, NY – February 7, 2011 – AOL Inc. [NYSE:AOL] announced today that it has entered into a definitive agreement to acquire The Huffington Post, the influential and rapidly growing news, analysis, and lifestyle website founded in 2005, which now counts nearly 25 million unique monthly visitors*

The transaction will create a premier global, national, local, and hyper-local content group for the digital age – leveraged across online, mobile, tablet, and video platforms. The combination of AOL’s infrastructure and scale with The Huffington Post’s pioneering approach to news and innovative community building among a broad and sophisticated audience will mark a seminal moment in the evolution of digital journalism and online engagement.

The new group will have a combined base of 117 million unique visitors a month in the United States and 270 million around the world**. Following the close of this transaction, AOL will accelerate its strategy to deliver a scaled and differentiated array of premium news, analysis, and entertainment produced by thousands of writers, editors, reporters, and videographers around the globe.

As part of the transaction, Arianna Huffington, The Huffington Post’s co-founder and editor-in-chief, will be named president and editor-in-chief of The Huffington Post Media Group, which will include all Huffington Post and AOL content, including Engadget, TechCrunch, Moviefone, MapQuest, Black Voices, PopEater, AOL Music, AOL Latino, AutoBlog, Patch, StyleList, and more.

“The acquisition of The Huffington Post will create a next-generation American media company with global reach that combines content, community, and social experiences for consumers,” said Tim Armstrong, Chairman and CEO of AOL. “Together, our companies will embrace the digital future and become a digital destination that delivers unmatched experiences for both consumers and advertisers.”

Armstrong continued, “Arianna is a singularly passionate and dedicated champion of innovative journalistic engagement, and a master of the art of using new media to illuminate, entertain and enhance the national conversation. Arianna is a remarkable person and she will continue to create remarkable outcomes for the combined company.”

“This is truly a merger of visions and a perfect fit for us,” said Huffington. “The Huffington Post will continue on the same path we have been on for the last six years – though now at light speed – by combining with AOL. Our readers will still be able to come to the Huffington Post at the same URL, and find all the same content they’ve grown to love, plus a lot more – more local, more tech, more entertainment, more finance, and lots more video. We are fusing a legendary and powerful new media brand with a vibrant, innovative news organization, known for its distinctive voice, a highly engaged audience, an expertise in community-building, and a track record for demystifying the news and putting flesh and blood on the data while drawing our audience into the conversation.”

Huffington continued, “By uniting AOL and The Huffington Post, we are creating one of the largest destinations for smart content and community on the Internet. And we intend to keep making it better and better.”

Kenneth Lerer, The Huffington Post’s Co-Founder and Chairman, said, “The Huffington Post team has created a potent brand with the proven track record of knowing how to grow traffic, inform and entertain its readers and build a one-of-a-kind online community. Add that to the powerful scale and resources of AOL and you have the perfect combination for today and the future. Together these two companies will be a premier online content provider. From local citizen reporting through AOL’s Patch, to The Huffington Post’s national reporting on politics, business and culture, consumers will have access to everything they want whenever they want it.”

AOL has agreed to purchase The Huffington Post for $315 million, approximately $300 million of which will be paid in cash funded from cash on hand. The Huffington Post is privately owned by its two cofounders, as well as a group of investors. The proposed transaction is subject to customary closing conditions, including receipt of government approvals. The boards of directors of each company and shareholders of The Huffington Post have approved the transaction. The transaction is expected to close in the late first- or early second-quarter 2011.

The Huffington Post over-indexes on educated, affluent users, reaching the key decision makers in C-suites around the globe. The Huffington Post speaks to this influential audience via a host of prominent voices on its group blog. Among those who have blogged on The Huffington Post are: President Barack Obama, Secretary of State Hillary Clinton, Mayor Michael Bloomberg, Larry Page, Diane Sawyer, Buzz Aldrin, Nora Ephron, Bill Maher, Madeleine Albright, Robert Redford, Katie Couric, Neil Young, Rahm Emanuel, Mia Farrow, Senator Russ Feingold, Senator Al Franken, Ari Emanuel, Harry Shearer, Senator John Kerry, Representative Nancy Pelosi, Madonna, Lawrence Summers, Jamie Lee Curtis, Ryan Reynolds, Craig Newmark, Alec Baldwin, Aaron Sorkin, Natalie Portman, Scarlett Johansson, Russell Simmons, Sean Penn, Bill Gates, Norman Lear, Charlie Rose, Elizabeth Warren, Tavis Smiley, Sheryl Sandberg, George Clooney, and former President Bill Clinton. And the audience speaks back, generating four million comments a month***.

The Huffington Post’s affluent, influential audience, that is growing at a rate of 22 percent (December 2009 vs. December 2010)****, when combined with AOL’s massive scale, video offerings and local expertise, will represent an incredibly desirable demographic for a broad range of advertising partners across the board.

AOL, Arianna Huffington, Huffington Post, merger

http://twitter.com/CRZ CRZ

MapQuest?!
WCinWI

I thought Huffington hated concepts like corporations.
WCinWI

I heart Mapquest. It’s about the only site in that bunch that is of any use.
nice_thought

WCinWI said:
I heart Mapquest. It’s about the only site in that bunch that is of any use.

Be aware though. It’s controlled by a lefty now. It might navigate you directly to Canada.
WCinWI

nice_thought said:
Be aware though. It’s controlled by a lefty now. It might navigate you directly to Canada.

In a world with Garmin and Google Maps, it’s just another option. See how that concept of free-market ideas works? I see the Huff Po crowd is a lil’ mad in their comments section…haha
WCinWI

nice_thought said:
Be aware though. It’s controlled by a lefty now. It might navigate you directly to Canada.

Besides, you know that Huffington was a Republican right? I think this was before she found out her husband was gay.
Gasket

WCinWI said:
I thought Huffington hated concepts like corporations.

What exactly are you saying here? I don’t want to assume what you are saying.
http://twitter.com/SailRabbits Magister

Congrats to Arianna for getting most of it in cash because I don’t see how this bodes well for AOL’s stock.
http://twitter.com/SailRabbits Magister

ETA: A quick glance makes it appear that they’ve spent half of their cash to purchase a homepage using the same theory employed, back when they bought Netscape.
WCinWI

Gasket said:
What exactly are you saying here? I don’t want to assume what you are saying.

Huffington has made most of her recent appearances about the negative nature of corporations. Like I said, commenters on her site are saying that this looks like a demise for Huff Po.
nice_thought

WCinWI said:
Huffington has made most of her recent appearances about the negative nature of corporations. Like I said, commenters on her site are saying that this looks like a demise for Huff Po.

Other than the demise part you are right on!
WCinWI

nice_thought said:
Other than the demise part you are right on!

Except that now she was just bought out (in some way, shape or form) by a corporation!
Color Me Badd

Good the Socialist takeover is beginning, Soros is in position for phase 2.
mcf1757

Rush Limbaugh Cannot Defend Ronald Reagan http://bit.ly/ghISbt
http://www.zazzle.com/talkingpoints NORBIT Jr.

“AOL, The Huffington Post To Merge Into The Huffington Post Media Network”

- or as most Americans like to call, PRAVDA!
LOL!
———————————————————————-

Seriously though, first Tyler goes to IDOL, then HuffPo goes Corporate…what is this, Year of the Sellout?
The Lantern of Truth

Hotscakes for everyone !!!
TangledThorns

Why is AOL investing in a hate merchant like HuffPo?
skyfet

Liberal propaganda.
http://www.zazzle.com/talkingpoints NORBIT Jr.

Color Me Badd said:
Good the Socialist takeover is beginning, Soros is in position for phase 2.

Mainstream Media reporting has been imbued with a socialist mindset for decades. How is this going to change anything?

Just think, AIR AMERICA!
Pablo

$315? Sounds about right.
Papi6391

AOL still takes funds from my checking account. I have been trying for over one year.
http://www.zazzle.com/talkingpoints NORBIT Jr.

Needless to say, CANCEL YOUR AOL!

That is, if you support personal freedom & responsibility over government tyranny and control.

Look at Egypt if you want to see what more & more government does to a country.
beamangrow

what right wing network could be sold at this price,it shows if you do report the news and not worry about right wing nutjobs you could make money,are you listening DAN
Mr B

I’ll never forget the first time I visited Huffpo. It was to read a post by a guy named Greg Gutfeld (unknown to me at the time).

The Patriotic Terrorist: http://www.huffingtonpost.com/greg-gutfeld/new-trend-on-the-rise-the_b_39594.html

After Greg left, I never went back.
Mr B

beamangrow said:
what right wing network could be sold at this price,it shows if you do report the news and not worry about right wing nutjobs you could make money,are you listening DAN

Curious. Are you okay with the excessive profit made on this sale?

The former CEO of Huffington post now works for Glenn Beck.
http://www.facebook.com/people/Tony-Westover/1496648721 Tony Westover

This isn’t the least bit surprising.

The Huffington Post was essentially cofounded by AOL (and Arianna Huffington’s oil money) and has never been a money-making venture, having to beg venture capitalists for money every year. Now they’re REALLY floundering and AOL is bailing out Arianna Huffington’s ego by buying them outright.

Of course, everything that AOL touches turns to shit, so this means the inevitable demise for the Huffington Post.
beamangrow

Mr B says:
February 7, 2011 at 10:25 am Mr B(Quote)
1 1
beamangrow said:
what right wing network could be sold at this price,it shows if you do report the news and not worry about right wing nutjobs you could make money,are you listening DAN

Curious. Are you okay with the excessive profit made on this sale?

The former CEO of Huffington post now works for Glenn Beck.

yes i am okay with the profit,as long as they dont start reporting fake news and making stuff up like fox news
Pablo

beamangrow said:
yes i am okay with the profit,as long as they dont start reporting fake news and making stuff up like fox news

Heh.
justanotherconservative

beamangrow said:
reporting fake news and making stuff up like fox news
« Previous 1 2 Click here to cancel reply.
add a comment» justanotherconservative | logout

what fake news do you refer to?
beamangrow

justanotherconservative says:
February 7, 2011 at 11:31 am justanotherconservative(Quote)
0 0
beamangrow said:
reporting fake news and making stuff up like fox news
« Previous 1 2 Click here to cancel reply.
add a comment» justanotherconservative | logout

what fake news do you refer to?

i dont have the time to do this,if you think fox news is news,then good luck to you
nice_thought

Ego of miss huffington.
http://www.zazzle.com/talkingpoints NORBIT Jr.

I think it’s time Sarah Palin ran a site to compete directly with this new enterprise.

Weeeeoooo! Catfight, anyone?
TeaPartyPatriot

ariana (HUFF-and-PUFF) helps put the LUNATIC in lunatic-left.

For those that don’t know of her lunatic history, fact is she was once a solid, responsible conservative republican! Then her rich husband divorced her and she couldn’t handle such absolute rejection and she went totally, completely insane and, naturally, sunk down into the DARK SIDE of d-crat socialism.

Clearly, she still is in desperate need of psychological counseling – like most d-crat socialists – to correct her outrageously flawed views of America and Americans and to stop the destructive self-loathing from which she – like all d-crat socialists – suffers.

AOL, RIP.
jo hoochie

beamangrow said:
justanotherconservative says:February 7, 2011 at 11:31 am justanotherconservative(Quote)0 0beamangrow said:reporting fake news and making stuff up like fox news« Previous 1 2 Click here to cancel reply.add a comment» justanotherconservative | logout what fake news do you refer to? i dont have the time to do this,if you think fox news is news,then good luck to you

It’s because he has NO answer! Fox is REAL news. It just don’t get any better than Fox! You want to know what’s going on??? Fox will tell you. That is the reason it’s #1
jo hoochie

TeaPartyPatriot said:
ariana (HUFF-and-PUFF) helps put the LUNATIC in lunatic-left. For those that don’t know of her lunatic history, fact is she was once a solid, responsible conservative republican! Then her rich husband divorced her and she couldn’t handle such absolute rejection and she went totally, completely insane and, naturally, sunk down into the DARK SIDE of d-crat socialism. Clearly, she still is in desperate need of psychological counseling – like most d-crat socialists – to correct her outrageously flawed views of America and Americans and to stop the destructive self-loathing from which she – like all d-crat socialists – suffers. AOL, RIP.

You are Smart and informative and Right!!
Leftist Asshat

Man I love the Huffington Post and AOL so this is great news!
I just wish I could view them with my favorite browser, Netscape, which no longer exists because AOL bought them.
theyapper

only proves the rich get richer…i like ariana…but i’m tired of those who have so much getting more…AoL must be nuts to pay that much for this site.
J Baustian

TeaPartyPatriot said:
ariana (HUFF-and-PUFF) helps put the LUNATIC in lunatic-left.

For those that don’t know of her lunatic history, fact is she was once a solid, responsible conservative republican! Then her rich husband divorced her and she couldn’t handle such absolute rejection and she went totally, completely insane and, naturally, sunk down into the DARK SIDE of d-crat socialism.

Clearly, she still is in desperate need of psychological counseling – like most d-crat socialists – to correct her outrageously flawed views of America and Americans and to stop the destructive self-loathing from which she – like all d-crat socialists – suffers.

AOL, RIP.

For starters, her ex-husband Michael was never a conservative Republican — Republican, yes, but not particularly conservative. She was a good wife and supported his political ambitions, which meant she endorsed the usual GOP positions in public; but in my opinion it goes too far to claim that Arianna was every conservative in her political philosophy.

After the divorce she continued to give support to both Newt Gingrich and Bob Dole. I remember her appearances with Al Franken, “Strange Bedfellows”, on Comedy Central, which gave her publicity and an introduction to the Hollywood Left. There are some reports that she was a friend of Jerry Brown during his first stint as governor and long before she was introduced to Michael Huffington.

Arianna is very smart and not crazy at all. For a middle-class girl from Greece she has done quite well for herself — getting an excellent education from an elite university, marrying a very rich husband, becoming well-known at the highest levels of American society and politics, and now becoming extremely rich in her own right. She is like a lawyer who can argue for a case for either the plaintiff or defendant, without letting personal views interfere. Who knows whether she actually has any strongly-held political opinions? If she does, they are probably left-wing views, but she could shift back to the right if she decides it is in her best interests.
J Baustian

As for AOL, it has not been relevant since before the bursting of the Tech Bubble, back in 1999 or so.

Presumably Arianna will let AOL continue to use her name. But this sale will likely mark the zenith of the HuffPo’s influence.
http://www.zazzle.com/talkingpoints NORBIT Jr.

Tony Westover said:
This isn’t the least bit surprising. The Huffington Post was essentially cofounded by AOL (and Arianna Huffington’s oil money) and has never been a money-making venture, having to beg venture capitalists for money every year. Now they’re REALLY floundering and AOL is bailing out Arianna Huffington’s ego by buying them outright. Of course, everything that AOL touches turns to shit, so this means the inevitable demise for the Huffington Post.

Except, didn’t Arianna earn her money the old fashioned way? – Marrying into it, then divorce?
- and then she became a feminist!

Yes, the stench of more liberal hypocrisy permeates once again!!
Gasket

WCinWI said:
Except that now she was just bought out (in some way, shape or form) by a corporation!

You can be critical of the actions of some corporations without being against all corporations. Arianna abhors corporate welfare. She believes corporations should not be getting handouts from government and the ever revolving door between govt and corporations eg. like how Orszag leaves the Obama administration and in 6 months he’s working for a corporation (Chase?) that benefited or had something to benefit from his former work as budget director. So you are being a little disingenuous with your analysis of the woman. Did you watch the Tavis Smiley hosted forum last month called “America’s Next Chapter”?
slander

So does this mean that iGadget will actually come out of the closet and admit its doe-eyed fawning over everything Steve Jobs (may his turtleneck never sag…)?
WildMan

The big question is can anyone understand what Arianna is saying? I mean you’d think that after a foreigner has been living in the US of A for all these years they would learn how to talk in English. You have to put everything she says in a translator. Wait, I never listen to her in the first place. Never mind…
Rusty Shackelford

Does AOL get all the old Green Acres shows. Dahling I love you,but give me Park Ave..
Alz

Rusty Shackelford said:
Does AOL get all the old Green Acres shows. Dahling I love you,but give me Park Ave..

Who’s gonna play Mr. Douglas?