Tuesday, May 12, 2015

Updated--Huffington Post Valued At $1 Billion In AOL Spin-Off Scenario

Update below.
Original post:
From re/code:

AOL Has Been in Talks to Spin Off HuffPost as Part of Verizon Acquisition Deal
According to numerous sources, while it has been negotiating its deal to sell to Verizon, AOL has also been in advanced discussions with a number of parties to spin off its flagship Huffington Post content unit.

The talks have been most serious with Axel Springer, the German media conglomerate, but a number of private equity firms have also expressed interest in the high-profile property. Sources said the Huffington Post has been valued at above $1 billion in this scenario, which would either be a complete sale or, more likely, structured as a joint venture.

The move would be designed to bring in more investment for growth for the Huffington Post, which AOL bought several years ago for $300 million. High content costs and the ability to monetize those assets, as well as grow them — AOL also owns TechCrunch and a number of other content properties — has been hard for the company. And competitors like BuzzFeed and Business Insider have garnered massive fundings to spur expansion....MORE
"AOL will always be an owner of HuffPost. And now Verizon will be an owner of HuffPost,"
-AOL CEO Tim Armstrong