Tuesday, February 8, 2011
AOL: Still Crazy After All These Years
Before this deal was announced, I had honestly forgotten that AOL still existed. I would be hard pressed to spell out how they make money. They have bought a number of smaller websites over the past couple of years, but the big news earlier in the week was that they bought the liberal news site The Huffington Post for the eye-popping sum of $315M. AOL has a history of making foolish moves with their cash and this acquisition may keep that tradition alive. I think this large acquisition signals the beginning of the end for AOL, and will hitch the Huffington Post to a falling star.
Update: Since announcing the acquisition AOL has lost $315M in capitalization, proving that the market is an excellent discounting mechanism and recognizes a lot of hot air when they see it. Does this baffling deal mark a near-term market high for liberalism?