Depending on who you hear it from, AOL is either potentially crazy or full of sound logic.
The big news today is that the online media company purchased popular news-blog site The Huffington Post, which just might prove its a little bit of both.
That and new partner Arianna Huffington’s assertion that “1+ 1 = 11″.
AOL has long dreamed to be a content and digital media lord and over the last few years has made a series of moves (acquiring TechCrunch, Fanhouse and building its online local-news network Patch) hoping to establish that reputation.
The HuffPo, as it’s affectionately known as by its closest comrades (or just lazy writers), is far from a traditional media source and probably more of a pop-culture hub showcasing popular topics and trends.
But besides continuing on its journey to create a “new media universe”, some believe this acquisition has a more clear focus: piggyback on Huffington’s content strategy of promoting engagement both in presentation and distribution. User interaction and link sharing is key to the success of the Post and that’s why it’s valuable in today’s media landscape.
But just how valuable is it?
Existing AOL properties could be structured more like the Post, or perhaps disappear putting more weight on the Post, and that’s where this Wall Street Journal blog gets skeptical. You see, the Post is only expected to net $50 million this year while it was bought for $315 million. Was it a reach for AOL? Who knows.
This is also where AOL can help the Post. AOL’s ad sales force could be used to make it a more profitable venture, while helping it reach a broader audience. That’s how some see this as a win for both sides.
While AOL has been lost in the shuffle in recent years after ascents from Google and Microsoft, it has a chance to create a niche with its head-first dive into content and digital media. It’s collected a lot of pieces and now its time to see if they fit together.
Tags: AOL buys Huffington Post, Arianna Huffington, TechCrunch
