AOL splashes $315 million on Huffington Post acquisition

by Steven Mostyn - Feb 7 2011, 09:27

If print isn’t dead—and I think we’re all agreed that it’s presently bleeding out—AOL would have this week splashed $315 million USD on the purchase of a leading newspaper or magazine publisher.

However, in actuality, the struggling online heavyweight has agreed to spend that amount on securing popular online news and lifestyle website The Huffington Post (HuffPost).

According to AOL, the acquisition of HuffPost is expected boost monthly U.S. traffic base to upwards of 117 million visitors, while also pushing its global online reach to around 270 million people.

“By combining HuffPost with AOL’s network of sites, thriving video initiative, local focus and international reach, we know we’ll be creating a company that can have an enormous impact, reaching a global audience on every imaginable platform,” commented Huffington Post co-founder Arianna Huffington via her official blog.

AOL’s latest online purchase comes as CEO Tim Armstrong continues in his attempts to transform the company into an all-encompassing media and entertainment hub.

Shares in AOL slipped sharply during the fourth quarter of 2010, reports the Reuters news agency, which resulted in a revenue plunge of 26 percent.

Once aligned with AOL, the ‘Huffington Post Media Group’ will be led by Arianna Huffington, who will oversee all of AOL’s properties—including the likes of tech destinations Engadget and TechCrunch.

“Far from changing our editorial approach, our culture, or our mission, this moment will be for HuffPost like stepping off a fast-moving train and onto a supersonic jet,” added Huffington.

“We’re still travelling toward the same destination, with the same people at the wheel, and with the same goals, but we’re now going to get there much, much faster.

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