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Business news compiled by Sherin Dev
AOL disclosed early Monday morning that to acquire internet news website Huffington Post for a deal of $315 million. This action reveals the intention of AOL to become the top producer of news, entertainment and other digital content. The transaction 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 combination of AOL’s infrastructure and scale with The Huffington Post’s pioneering approach to news and innovative community building among a broad and sophisticated audience will mark a seminal moment in the evolution of digital journalism and online engagement.
As part of the deal, Huffington Post co-founder Arianna Huffington will be appointed president editor-in-chief of all of AOL’s content. She will not only run The Huffington Post, but will lead AOL’s news, tech, women, local, multicultural, entertainment video and community content businesses in an AOL entity that will be known as the Huffington Post Media Group
As per Newyork Times, the two companies completed the sale Sunday evening and announced the deal just after midnight on Monday. It will be the company’s largest acquisition since it was separated from Time Warner in 2009.
AOL has 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. The transaction is expected to close in the late first- or early second-quarter 2011.
AOL now claims that the combined entity reaches 117 million unique visitors per month in the U.S. and 270 million worldwide. AOL CEO Tim Armstrong says the new organization will be “a next-generation American media company” focused on content, community and social experiences
1. “A Merger of Vision” – Arianna Huffington
2. Press release from AOL and The Huffington Post 