AOL, Patch's Parent Company, Buys Huffington Post

AOL Inc. announced Monday that it has entered into a definitive agreement to acquire The Huffington Post, the influential and rapidly growing news, analysis and lifestyle website.

AOL President Tim Armstrong says the transaction will create a premier global, national, local and hyper-local content group for the digital age. In a statement released by AOL, Patch is to become part of The Huffington Post Media Group, but it is unclear yet how the move will affect Patch operations, which include more than 700 sites across the country, including one in Cupertino.

"Together, our companies will embrace the digital future and become a digital destination that delivers unmatched experiences for both consumers and advertisers," said Tim Armstrong, chairman and CEO of AOL, in a statement released Monday.

The combination of AOL's infrastructure and scale with The Huffington Post's pioneering approach to news and innovative community building among a broad and sophisticated audience will mark a seminal moment in the evolution of digital journalism and online engagement.

The new group will have a combined base of 117 million unique visitors a month in the United States and 270 million around the world. Following the close of this transaction, AOL will accelerate its strategy to deliver a scaled and differentiated array of premium news, analysis and entertainment produced by thousands of writers, editors, reporters and videographers around the globe.

"The acquisition of The Huffington Post will create a next-generation American media company with global reach that combines content, community and social experiences for consumers," Armstong said.

As part of the transaction, Arianna Huffington, The Huffington Post's co-founder and editor-in-chief, will be named president and editor-in-chief of The Huffington Post Media Group, which will integrate all Huffington Post and AOL content, including Engadget, TechCrunch, Moviefone, MapQuest, Black Voices, PopEater, AOL Music, AOL Latino, AutoBlog, Patch, StyleList and more.

"This is truly a merger of visions and a perfect fit for us," Huffington said in a statement. "The Huffington Post will continue on the same path we have been on for the last six years—though now at light speed—by combining with AOL."

AOL has agreed to purchase The Huffington Post for $315 million, approximately $300 million of which will be paid in cash funded from cash on hand. The Huffington Post is privately owned by its two cofounders, as well as a group of investors. The proposed transaction is subject to customary closing conditions, including receipt of government approvals. The boards of directors of each company and shareholders of The Huffington Post have approved the transaction. The transaction is expected to close in the late first- or early second-quarter 2011.