AOL Buys HuffingtonPost.com But Will It’s Contributors Stay On?

Tim Armstrong just bought Arianna Huffington’s baby, but will it go out with the bath water?  Arianna Huffington built HuffingtonPost.com on the backs of over 4000 writers who contribute content.  The message of HuffPo has always been that the power of Op-ed news and reporting from those close to the source created stories no large media organization could match, but what happens when that community created news site gets bough by large media side sync herunterladen.

HuffingtonPost authors aren’t typically paid.  Many contribute for the fame that comes from hitting the front page of HuffPo, or because they truly believe that the reach that HuffPo offers is worth giving up the small amount of money they would make blogging on their own site.  I very much doubt that AOL will be able to keep that following herunterladen.AOL Buys HuffingtonPost.com But Will It’s Contributors Stay On?

The $315M aside, previously authors probably weren’t overly aware of the nearly $2M in ad revenue that HuffingtonPost.com generates monthly, and while many of them knew HuffingtonPost was big, likely most of them didn’t think of the site in terms of 630M Page views a month.  You see as an author at HuffingtonPost you don’t get access to this information, and with no earnings reports from the up until now privately held company people just didn’t have that insight gelbe seiten herunterladen.

Tim Armstrong on the other hand won’t have that option with AOL owning the site.

Assuming that all of the authors and things that make HuffingtonPost stay the same, can AOL make it’s money back on the purchase tagebuch herunterladen kostenlos?

The site generates just shy of 630M Page views a month. 90% of those are US Page Views.  I estimate that traffic to be worth about $3 per 1000 page views, based on the demographic, and the ad placement on the site.  That is about $1.9M per month in topline revenue.  With the power of AOL to sell ads, and manage placements, and drive traffic to articles using it’s own home page, likely AOL can push this to $6 CPM and double the number of page views.  This would take the property to about $8m a month in topline revenue.  Based on the current authorship model, and AOL’s ability to manage infrastructure, this should leave AOL with about $4.5M in net.  That would allow them to recoup their costs in about 6 years. 

While many valuations are based on 7X Net, this seems like a big bet because it assumes that AOL couldn’t have used it’s front page to push people to pictures of puppies and made the same amount of money, and it assumes that all of the things that make HuffingtonPost.com great are transferable kampfjet simulator kostenlosen vollversion.

Huffingtonpost Demographics

It also assumes that AOL can match the demographics F1 games free full version. 74% of HuffingtonPost.com’s readers are over 35. 88% of them attended some college. 68% of them make over $50k per year.  This is in stark contrast to AOL’s Demographic 75% of which have no college degree, and 41% of which earns less than $50k per year where you can download music for free.

Largely I would say what Tim Armstrong just bought is going to be a flaming pile of pissed off bloggers who will abandon the fight to spread news and opinions for the sake of the message when they realize they are actually part of a move to capitalize on their passion with out compensating them, and Tim will be left with a domain name, and the need to hire 100 writers at above market rate because you can’t get the expertise that comes from this core of people with other day jobs if you don’t match what they would make in their day jobs herunterladen.