AOL to acquire the Huffington Post

AOL has agreed to buy the Huffington Post website for $315m (£199m), expanding the business in a bid to boost diminishing ad revenues.

/d/g/u/huffingtonpost160.jpg

The acquisition will see Huffington Post co-founder Arianna Huffington leading the newly-formed Huffington Post Media Group, integrating all AOL’s network of editorial and video sites, reaching an estimated combined audience of 270 million.

Following the close of the transaction, AOL plans to accelerate its editorial strategy to deliver “a scaled and differentiated” variety of news, analysis and entertainment.

The deal is expected to close in March or April this year.

Chairman and CEO of AOL Tim Armstrong says: “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.”

AOL separated from Time Warner in 2009 and has subsequently acquired new businesses, such as the Tech Crunch blog, and launched a new advertising system. AOL expects the purchase to boost its waning advertising revenues.

Fourth-quarter results suggest the company is struggling to improve ad sales. It has just a 5.3% market share of the US display advertising revenue, according to eMarketer.

The Huffington Post, a news and analysis website, was founded in 2005 and reached almost 25 million unique monthly visitors to its site in December, according to comScore.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here