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When AOL purchased Huffington Post for $315 million nearly six months ago the deal left many analysts scratching their heads and now it appears that AOL has realized the error of their ways, meeting with law firm Watchell, Lipton, Rozen & Katz to discuss selling the company alongside investment bank Allen & Company.
While AOL has managed to provide revenue in the vicinity of $1 billion during the first 6 months of 2011 the organization is still hemorrhaging money which has been exacerbated by HuffPost which continues to increase in reach but lacks the capital needed to make the company profitable.
According to various reports HuffPost sales managers have not been able to fill ad spots for all sections of their website, while premium spots are not attracting the type of revenue premium sites often demand, while other AOL properties are suffering from the same type of advertiser abandonment.
Adding to the company’s troubles leading tech site TechCrunch has witnessed huge reader falloff since being acquired from AOL, barely reaching 1M unique monthly readers from a high of more than 2 million. How bad has the TechCrunch fall been? Site founder Michael Arrington has publically voiced his displeasure for working with Huffington, while calling AOL “pathetic.”
