MGI Research

Saturday, Dec 07th

Last update01:14:46 AM GMT

Commentary: Blogging Grows Up - AOL Acquires Huffington Post

For a relatively modestly sized deal, the AOL acquisition of Huffington Post generated a disproportionately audible media and investor response. It seems the attention often bestowed on the highly visible and sometimes controversial Huffington Post co-founder, Arianna Huffington, has obscured the obvious fact that this is not about HuffPo, - it is all about AOL. HuffPo was destined to be sold, - after Newsweek acquired Tina Brown's The Daily Beast, the writing was on the wall, it was just a matter of time. News Blogging, especially politically focused, has become a real business. For AOL, the stakes are much larger - this deal is a bet-your-farm kind of transaction. Under different market conditions, AOL would have probably ended up going for a more meaningful target like The New York Times. On the heels of the deal, many investors were doing a double take on many traditional media companies like Gannett. To see the full content of the note click here.