Posts Tagged ‘aol’

So let me get this straight

Posted: February 9, 2011 by datechguy in media
Tags: , ,

Huffington post sold for $315 million after having investors kick in $36 million and none of the 4000 people who write for it get paid?

That’s 351 million not counting any revenue that the site has generated. If you paid the 4000 folks in question 10k each for the time they put in over 5 years that still leaves 311 million. Subtract the investor money of 36 mil and you have 250 mill subtract say half for taxes and you have 125 mil and say another 25 mil for expenses and Arianna still pockets 20 mil a year over five years plus the revenue generated.

Yet the 4,000 got not a cent. The 40 mil that would be necessary to give them a piece of the pie is not to be. So all of you on the left who provided free content so Arianna could cash out big time now get to do the same thing so AOL can cash out big time. Is that what you signed on for?

Hey its a free country if you guys want to put out all that work so Huffington can get richer that’s totally up to you, but this is one version of Money for nothing that hasn’t been banned.

Then again if you look at Hotair it’s not about the money, it’s about the re-election:

Arianna Huffington, who got $315 million in a sale of Huffington Post to AOL as well as complete control of AOL’s content. She has plans for that power, Sargent reports at the Washington Post. She hopes to turn AOL into a center of “citizen journalism” in advance of the 2012 elections:

Or to put it another way, not only did Arianna get a big payday, but by using it to re-elect The One™ she and her friends are counting on, if successful a great payback on the back of the American Taxpayer for every liberal cause out there.  And that payout won’t be millions, it will be billions!

Update; Irony thy name is AOL via glenn AOL stock values falls $315 million since feb 1st

Stacy McCain does the match on AOL and points out something interesting about the money in the AOL deal:

What it means, I suspect, is that the Left is willing to “invest” in liberal media ventures that are supposedly for-profit but which, in fact, lose money. Because, after all, whose money is being invested? Not theirs.

Five words: Government employee union pension funds.

That, I suggest, explains this whole deal. Private investors are now selling their AOL shares, while managers of pension funds for AFSCME, SEIU and other unions are buying AOL stock, thus providing the investment capital necessary to fund expansion of the Left’s online media presence in advance of Obama’s re-election campaign.

Belvedere notes that this is not an issue for the left:

Profit doesn’t mean much to the Committed Left — not if you mean the word in it’s classical sense [OED: ‘financial gains’]. Oh sure, they need money to fund their various schemes, but the Manic Progressives are always willing to sacrifice dollars for propaganda [see: MSNBC]. Besides, if they play it right, they can always funnel some taxpayer dollars into funding their schemes.

Broadcasting their lies relentlessly until they get absorbed by enough of the masses is a tactic the Leftists have employed successfully for a century now.

The daytime range of my radio show, looks pretty good for ads doesn't it?

I did the math, If I sold every second of every moment of ads for my radio show for one year that comes up to $64,800. If the liberals were to be believed about some giant conservative conspiracy I would have already had the Koch Brothers buying the entire time to support my radio show and blogging for an entire year.

Alas that is not the case, every day I’m going door to door pitching the show, extolling the range of the radio station, the strength of my guest and the appeal of my show to a growing audience, doing my best to make the sale and pay the mortgage.

The “interests” I’m beholden to are Basement Technologies of Western Mass., Aaron Pallet, Putnam Street lanes. and every other advertiser who buys time on my show. Each of them offer valuable services or produces to my listeners and buy ads on my show to attract customers. Yet ironically the left would paint me because I’m a person of the right as beholding to rich interests while at the same time they are paid millions for a product that doesn’t justify its value.

The world is a weird place.

We see that Arianna Huffington has made her blog pay off:

I got an email from Tim Armstrong (AOL Chairman and CEO), saying he had something he wanted to discuss with me, and asking when we could meet. We arranged to have lunch at my home in LA later that week. The day before the lunch, Tim emailed and asked if it would be okay if he brought Artie Minson, AOL’s CFO, with him. I told him of course and asked if there was anything they didn’t eat. “I’ll eat anything but mushrooms,” he said.

The next day, he and Artie arrived, and, before the first course was served — with an energy and enthusiasm I’d soon come to know is his default operating position — Tim said he wanted to buy The Huffington Post and put all of AOL’s content under a newly formed Huffington Post Media Group, with me as its president and editor-in-chief.

As a person who pays his mortgage one knock on a strange door at a time I must congratulate Arianna on making her site pay off. Granted she was already doing good personally but it’s always nice to see someone do OK.

There is one side thought that instantly comes to mind however. When you are buying something like the HuffPo you are not only buying the structure and the “writers” so to speak, you are also buying the commentators.

It’s axiomatic that you can’t hold a blogger responsible for the comments of individuals on a site and most people simply don’t have the time to police comments to the degree that is necessary for proper decorum, but AOL is a large company. A VERY large company with a fair amount of employees and the manpower to stay on top of that kind of thing.

There have been cases when the Huffpo has made it a point to keep comments closed to make sure some of their more, shall we say enthusiastic leftists don’t embarrass them. With “civility” now the code word of the left and with AOL brand at stake, they will now find themselves of necessity diligently policing the site, and if they don’t well I’m sure there are bloggers on the right with a lot more time on their hands than me who regularly read the Huffpo who will take the time to find this kind of stuff and helpfully point it out to the new owners at AOL.

So AOL I hope you like your purchase, but now remember you OWN it, all of it.

Update: Stacy notes the relative value of his blog. No word on what DaTechGuy on DaRadio might be worth, but then again I’m just looking to make enough to pay the bills every week.

Ace links. I actually think its the first time AOSHQ has linked here. Welcome Ace readers, take a peek around, we have interviews from the GOP Growing Grassroots convention this weekend in Milford Mass. and check out radio show on WCRN AM 830 (50,000 Watts of true talk) you can listen to the latest one featuring bloggers such as Dan Collins of POWIP, Roxeanne De Luca of Haemet, Tom Bowler of Libertarian Leanings and this week we had Congresswoman Renee Ellmers chairwoman of the House Sub Committee on health and technology.

You can listen live to last weeks show here and remember we will be on at our new time 10 a.m. to noon starting Saturday Feb 12th from CPAC!