Following their strategy to become the premier content network with local, national, and international reach, AOL has agreed to acquire the Huffington Post for $315 million, approximately $300 million of which will be paid in cash funded from cash on hand. Founded in 2005, The Huffington Post currently sees about 25 million unique visitors per month. The rapidly growing site covers news, analysis, and lifestyle.
“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. Together, our companies will embrace the digital future and become a digital destination that delivers unmatched experiences for both consumers and advertisers.” — Tim Armstrong, Chairman and CEO of AOL
This isn’t just a simple acquisition. 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. This group 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.
“This is truly a merger of visions and a perfect fit for us,” said Huffington, “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.”
Tim Armstrong added, “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.” The transaction is expected to close in the late first- or early second-quarter 2011.