|Armstrong and Huffington|
Bloomberg quotes analyst Shahid Kahn of Morph Media as saying:
- With this acquisition, Tim Armstrong is well on his way to transforming AOL into an online editorial-based content company … HuffPost gives AOL a very compelling, affluent, educated young audience. It further strengthens AOL’s overall editorial abilities with Arianna in charge.
- Word is that's only a first-quarter "shift" in the toughest ad quarter and a snapback could come in April; still, going backwards so soon out of the chute has some Patchsters concerned. … Getting a new boss won't reduce the anxiety level any.
- Will Huffington, whose site only recently became profitable, goose Patch traffic with babe shots and other mindless eyeball-attractors as she does at her eponymous site? AOL's recently leaked strategy document is scarily realistic about the need for cheap content; HuffPo seems to fit; Patch doesn’t.
On a conference call with analysts, AOL Chief Financial Officer Arthur Minson said the company expects Huffington Post will generate $50 million in revenue this year, with a profit margin of 30%, according to AP. By comparison, AOL drew $2.42 billion in revenue last year. About 53% came from ads, and most of the rest from its dwindling base of dial-up Internet subscribers. Minson said the deal will save AOL $20 million a year by allowing it to eliminate operations that overlap with Huffington Post. (Photo credit: Financial Times)