AOL, who has never been one to overpay for an acquisition, purchased the post for $315 million. Not a bad profit margin for the Huffington post, which began with a $1 million investment in 2005. Ms. Huffington pledges herself to AOL, and implies that she wants this to be her final transaction. It has been just over a year since the split of AOL and Time Warner. Investors hope that this rebound will reflect in company profits.
The Huffington Post established a following, by using content it pulled from other news sources. Due to the Post's popularity and growth, they began using more experienced journalists, leading them to be a more trusted news source. Through their engagement, AOL may become better known for their editorial content. Will this marriage bring a return for investors?
Only time will tell. To this day, the biggest merger to ever take place is that of AOL and Time Warner. The two have suffered huge losses over the past decade. In 2009, the two separated, and Time Warner wrote off $100 billion loss. During their time together, they lost several executives, due to an advertising fraud inquiry.
AOL hopes that by acquiring the Huffington Post's following, they will be able to generate millions through advertising. Not everyone learns from their first mistake. If you're looking for a second opinion, there's moviefone. "If this is your first time calling, press one now."