Great Move by AOL to Buy HuffPo
I’m not the first to say it but I think AOL’s purchase of Huffington Post for $315 million was a great move. Whenever you invest in a company, you’re really investing in the people. With the acquisition, AOL just added a real visionary to their management team.
If you look at all the great companies and how they started out — you have to consider who the visionaries were. Apple = Steve Jobs, Microsoft = Bill Gates, Google = Sergey and Larry, Facebook = Zuckerberg… and the list goes on. Arianna Huffington is obviously one of the shining stars in online media and having her on the AOL team bodes well for the company’s stock price. $315 million was a hefty price to pay but in the grand scheme of things, I believe it was a great acquisition for AOL.
AOL closed at $21.19 today — actually down 3.4% for the day so investors didn’t react very positively to the news of the acquisition. But I believe in the that long term, AOL’s chances of turning things around has greatly improved. I think $21-$22 is a great entry point for the stock with a lot of upside if Arianna can quickly turn AOL’s content division into the huge success that Huffington Post has become.
