AOL acquires The Huffington Post for $315 million

[News_Editor]

AOL acquires The Huffington Post for $315 million

2011-02-07 18:15:35 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- Media company AOL Inc. on Monday announced that it has entered into a definitive agreement to acquire The Huffington Post, an American news website and blog, for $315 million.

The early morning announcement said the deal 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 Huffington Post currently receives some 25 million unique monthly visitors and is listed as among the 150 most visited websites in the world on Alexa.com.

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, according to AOL. And following the close of the 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 integrate 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."

AOL said it 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 co-founders, 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 and it is expected to close in the late first- or early second-quarter of 2011.

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."

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