The Huffington post has now confirmed that its been bought by AOL for $315 million. The website, which was launched in 2005, is essentially a news aggregator featuring coverage of politics, media, business, entertainment, lifestyle, world news and so on.
AOL is still relying on revenues from existing subscribers to it's dial up services. It's been reported that 80% of its current revenues still come from this source, providing the company with about $244 million every year. The company is clearly looking at new sources of income however and the Huffington Post is one it's decided will make a good acquisition.
In a statement they said...
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.
AOL also owns many other popular websites including the tech websites TechCrunch and Engadget. Huffington have said "By uniting AOL and The Huffington Post, we are creating one of the largest destinations for smart content and community on the Internet. And we intend to keep making it better and better."
It can be certain that this acquisition will generate much needed additional revenue for AOL, though how many years it will take to recoup such a huge investment remains to be seen.
AOL has seen many financial scares, purchases and sales in the last few years. The company is no doubt looking with this aquisition to stabilise its financial future.
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Ghacks is a technology news blog that was founded in 2005 by Martin Brinkmann. It has since then become one of the most popular tech news sites on the Internet with five authors and regular contributions from freelance writers.