GLOBAL, FEBRUARY 2011 – AOL announced on February 6 that it is acquiring the web news site Huffington Post for $315-M, reports Ad Age. The move has observers scratching their heads on the question of integration, strategy and profitability for both advertising-driven platforms.
Huffington Post co-founder Arianna Huffington will become president and editor-in-chief of the new Huffington Post Media Group focusing on content. The site, known for its political commentary, has over 3,000 bloggers on a wide range of topics.
In an internal memo to AOL staffers, CEO Tim Armstrong stated that the acquisition is consistent with their " 80:80:80 focus – 80% of domestic spending is done by women, 80% of commerce happens locally and 80% of considered purchases are driven by influencers."
“The Huffington Post is a strong influencer brand and it attracts a valuable audience, including a great focus on women’s content. In addition, Arianna Huffington is a world-renowned expert on women’s topics and issues, and has enabled The Huffington Post to grow rapidly by continually developing new audiences,” wrote Armstrong.
Whether the consolidated efforts of Armstrong and Huffington will bring in the advertisers is still a big question mark as AOL continues to struggle with falling ad revenues despite acquisitions under Armstrong’s leadership.
Here is NMA.tv’s take on the news.
