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Online consort AOL Inc. is buying online programme hub Huffington Post in a $315 meg care that represents a brave bet on the future of online news.

The acquisition declared primeval Monday puts a high-profile vocalization evaluation on a program of acquisitions and strategic moves engineered by AOL CEO Tim jazzman in an try to reshape a fallen cyberspace icon. AOL was once the king of dial-up online admittance famous for its present CD-ROMs and "You've got mail" acknowledgement in its inboxes.

Perhaps just as important as production up a programme locate and ranks as digit of the crowning 10 current events and orbicular programme sites, AOL module be adding Huffington Post co-founder and media grapheme Arianna Huffington to its management aggroup as conception of the deal.

After the acquisition closes after this year, Huffington module be locate in calculate of AOL's ontogeny array of content, which includes favourite technology sites Endgadget and TechCrunch, topical programme sites Patch.com and online mapping assist Mapquest.

The toll that AOL is stipendiary is "really just the hiring gift to intend Arianna," said technology shrink Rob Enderle. "This is digit of those out-of-left-field moves that actually makes a lot of sense. This could locate AOL back on the map."

Armstrong, a former Google Inc. executive, has been disagreeable to turn AOL into a go-to locate for a wide variety of programme since he was hired to turn around the consort in Apr 2009 patch it was still a conception of Time filmmaker Inc. The makeover is fashioned to provide Web surfers a reason to meet AOL's websites more ofttimes to support increase online ad sales.

At the aforementioned time, jazzman has ordered off hundreds of employees in an try to increase AOL's business action and hit price. It has been a plod so far. AOL forfeited $782.5 meg terminal year, mostly because of accounting charges, and the company's hit is today worth slightly inferior than after it was spun discover of Time filmmaker 14 months ago.

The care "will create a next-generation American media consort with orbicular accomplish that combines content, community, and ethnic experiences for consumers," jazzman said in a evidence announcing the deal.

Founded in 2005, Huffington Post is owned by Arianna Huffington, Kenneth Lerer and a group of added investors. The locate attracts 25 meg monthly visitors. AOL module clear $300 meg of the acquire toll in cash.

Putting Arianna Huffington into a function of noesis could eventually threaten Armstrong's job section if AOL still struggles, Enderle said.

"This is a gutsy advise (Armstrong's) conception because Arianna could end up running AOL," Enderle said.

In a blog post most the deal, Arianna Huffington praised Armstrong's vision for AOL and said they were on the aforementioned tender as they discussed their ambitions for online news. "We were practically finishing each other's sentences," Huffington wrote most their discussions. She wrote that the care was signed at the Super Bowl in Dallas, which she and jazzman attended.

If it wins expected regulatory approval without some hitches, the care module likely near in New March or primeval April.

Armstrong has been an battleful care maker since his arrival, but this marks by farther the large acquisition of his tenure. Various publicised reports quoting unidentified grouping hit also said he has talked to clannish justness firms most the possibility of disagreeable to buy character Inc., added struggling cyberspace originator that remains a household name. character CEO Carol Bartz, though, has shown lowercase welfare in employed with AOL.

AOL had just a 5.3 proportionality share of the U.S. display business income in 2010, down from 6.8 proportionality in 2009, according to eMarketer. Facebook, meanwhile, accounted for 13.6 proportionality of display income terminal year, up from 7.3 proportionality in 2009.

Huffington Post grew apace from start to online colossus and ranks as digit of the crowning 10 current events and orbicular programme sites. Over time, it launched city-specific pages and matured a roster of sections such as matter and books. The impact of its 70-person paid staff is augmented by noesis from programme outlets and 6,000 bloggers who write for free.

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