AOL forms Huffington Post Media Group with Huffington co-founder as head.
In a move that is sure to be considered bold, AOL has announced acquisition of the popular Internet newspaper Huffington Post. The website went independent in 2009, and is renowned for its news and opinions. According to The New York Times, the deal is worth $300 million in cash with $15 million in stock.
As part of the deal, Huffington Post co-founder Arianna Huffington will be appointed the president editor-in-chief of all of AOL’s content, including news, tech, women, local, multicultural, entertainment video, and community content businesses. She will also be the head of the newly formed Huffington Post Media Group which will be in charge of all of AOL’s entities, which includes popular websites like MapQuest, AOL Music, Autoblog, Patch, Engadget and TechCrunch.
According to AllThingsD, Huffington Post CEO Eric Hippeau and Chief Revenue Officer Greg Coleman will be leaving the website.
“By combining HuffPost with AOL’s network of sites, thriving video initiative, local focus, and international reach, we know we’ll be creating a company that can have an enormous impact, reaching a global audience on every imaginable platform,” Arianna Huffington said a blog post announcing the acquisition.
AOL CEO Tim Armstrong says the new organization will be “a next-generation American media company” focused on content, community and social experiences.