The Huffington Post has agreed to be purchased by AOL for $315 million, with co-founder Arianna Huffington to be named president and editor-in-chief of the Huffington Post Media Group,reports Bloomberg News.
According to the article, "AOL is struggling with declining revenue in both its advertising and Internet-access subscription businesses. The company this month reported fourth-quarter revenue fell 26 percent to $596 million, with advertising sales dropping 29 percent to $331.6 million.Huffington Post had revenue of about $30 million last year."
The deal comes as AOL tries to drive advertising growth by increasing its investments in online content, the story says. The Huffington Post’s material will be integrated with AOL content from sites including TechCruch, which was bought last year by AOL, and other content sites such as Moviefone and Engadget, the story says.
The article adds, " “With this acquisition, Tim Armstrong is well on his way to transforming AOL into an online editorial-based content company,’ Shahid Khan, chairman and chief strategist at MediaMorph Inc., a New York-based digital media-tracking service, said in an interview. ‘HuffPost gives AOL a very compelling, affluent, educated young audience. It further strengthens AOL’s overall editorial abilities with Arianna in charge.’ ”