NEW YORK, NY – AOL has put The Huffington Post up for sale. They bought it for $315 million in February.
AOL bought Arianna Huffington’s website for $315 million, looking to the high-profile liberal pundit to rescue it from the dustbin of Internet history.
But the purchase hasn’t worked out so well and AOL wants to get rid of The Huffington Post as soon as possible. “It’s been a nightmare. Arianna might have some talents for some things, but she is a terrible manager and leader. She’s ruined both our brands,” said a source inside AOL.
“AOL spent 40 percent of their cash for very little near-term return,” said John Westergaard, an analyst for Goldman Sachs in February. What they get for it. Insiders say they got a “total mess.”
“I hate to say ‘I told you so’ to AOL, but… I told you so,” said Westergaard.
AOL has retained the firm ALLEN & CO to explore a sale of the company including a sale of Huffington Post for $27M.
AOL expected The Huffington Post to generate around $10 million in profit. In six months, the profits so far are – zero. “The Huffington Post is dragging down the entire company,” said the AOL insider.
“One plus one will equal 11,” AOL Chief Executive Tim Armstrong said in an interview with The New York Times in February. Today, insiders are saying, one plus one equals minus 11.
In February Armstrong said, “Arianna is a singularly passionate and dedicated champion of innovative journalistic engagement, and a master of the art of using new media to illuminate, entertain and enhance the national conversation.”
Today, insiders say Arianna is “an incompetent moron.”
So, are there any bidders for The Huffington Post?
Rumors are that Glenn Beck’s internet site, “The Blaze” has made an offer. The cost of Arianna Huffington working for Beck… priceless.