In our coverage of AOL's hyper-local news sites called Patch, we indicated the company's leadership might not entirely get how online news works or makes money.
Well, maybe they're starting to get it, because AOL just purchased one of the hottest properties in the world of web-based journalism, L.A. millionaire-socialite-author Arianna Huffington's Huffington Post.
In a statement dated Feb. 7, AOL states the purchase price is $315 million and that's going to give Arianna and friends $300 in cash upfront …
… because what this limousine liberal needs is more money.
AOL states that the Post, established in 2005 and based mostly on news aggregation and unpaid opinion pieces (L.A. Mayor Antonio Villaraigosa has used the site to spin his favorite issues), reaches 25 million unique visitors a month.
Huffington herself is part of the deal: She'll head AOL's “Huffington Post Media Group,” which will be an umbrella for AOL's coverage of news, tech, women, “local,” and more.
Because after this $300 million-plus deal she needs even more money (earned partly from unpaid writers).
AOL boasts the Post will help it reach 117 million Americans.
Read AOL's press release here.
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