NEW YORK (AP) — Tim Armstrong has looked like the unluckiest man in media for the past year. He used to be Google's ad sales maestro, the definition of digital success. But ever since May 2009, when he took the job of turning around AOL, he has overseen abysmal earnings, wretched morale and a local news strategy that has been slammed as a money-losing Web sweatshop.
Then, in a move that not even the most gossipy of media obsessives saw coming, Armstrong announced at the Super Bowl in Texas that AOL was buying The Huffington Post, the Internet news darling, for $315 million. Armstrong went from looking lame to looking awfully sharp. And awfully lucky.
Perhaps no online property was lusted after by media moguls like the one Arianna Huffington founded six years ago. Its traffic rivals The New York Times. Its infrastructure is virtually zero-cost. Its social media strategy is practically perfect. Oh, and it turned its first profit last year on $30 million in revenue. HuffPo expects to triple revenue by 2012.
"The Huffington Post was in big-time growth mode, and in theory this gives them access to the resources they'll need for even faster growth," says Andy Chapman, the head of digital trading at MindShare North America, a unit of the ad agency WPP PLC.
Huffington's original vision was to create the political left's answer to the right-leaning Drudge Report, minus the venom. When it launched in May 2005, The Huffington Post was derided as the plaything of a rich, Cambridge-educated political pundit.
“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and weren't so lazy.”
“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and weren't so lazy.”
