AOL buys The Huffington Post





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Published on Feb 8, 2011

AOL has announced it will buy The Huffington Post for a sum of $315 million, a move that has sparked speculation on the fate of both entities. The Huffington Post hasn't been a cash cow for Arianna Huffington. Despite its wide influence and continued content expansion, industry watchers have long questioned the Internet publication's profitability.

The real scrutiny belongs on AOL. Once a dominant media force, the company has suffered from unwise business deals, declining ISP subscribers and dwindling ad revenues. AOL head Tim Armstrong hopes to right his sinking ship by placing Huffington in charge of all editorial content on the AOL portal, as well as on the company's other Internet outlets.

An embarrassing leak showed that AOL's hopes for the future are unrealistically high. Is the end near for both AOL and Huff Po?

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