Amstrong bet on AOL

Amstrong bet on AOL

Tim AmstrongAccording to some analysts, despite the substantial number of acquisitions that led AOL to hold a very rich portfolio of quality sites like Techcrunch, Massively and Joystiq (sites that for are benchmarcks to look for improvements), the former queen of the “new economy” of the beginning of the century would be a group with limited prospects of development.

Do not believe in these prophecies Tim Armstrong, alreadythe biggest single shareholder  in AOL (a company of which he is Chairman and Ceo), which after the acquisition of The Huffington Post (famous online magazine founded in 2005 by Arianna Huffington, Kenneth Lerer and Jonah Peretti rose to 25 million unique users per month thanks to the work of over 9,000 volunteers (i.e. not paid) bloggers, and some good ideas such as the choice of the definitive post title on the basis of the count of the most popular of two different alternatives in the first minutes from online pubblication) has doubled his stake in the company by buying 477,000 shares for about ten million dollars, bringing to 876,511 titles the total he owns (about 19.1 million dollars of investment).

Arianna HuffingtonArmstrong, who also has an indirect participation of approximately another 195,000 shares through his investment company, the Polar Group, and other 514,300 with his family trust, apparently having to be imitated by the same Arianna Huffington, whom as confirmed by the site will receive 25% of her proceeds from the sale of the famous online magazine to AOL (at a cost of around $ 315 million, including 300 in cash, equal to 5 times the projected 2011 revenue of The Huffington Post) in shares of the same AOL.

Which is undoubtedly an act of faith by the future manager of the new multimedia group, because of the (poor) performance of the AOL stock in the stock market in recent years and since after the announcement of the sale many bloggers have signaled that they do not wish to continue to write for free (albeit in exchange of visibility) for the benefit of a corporation like AOL, jeopardizing a competitive advantage the The Huffington Post had previously enjoyed with respect to all the information sites that pay the work of their contributors.

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