Those eight words are not usually kind to a strategist.
I (and perhaps Steve Case) am hoping that Tim Armstrong knows more about why acquisition/merger will create value – than he is saying. One and one don’t often add up to 11. But this could be fun. Armstrong clearly is in the news business and is busy collecting pearls on a string. It reminds me of the way blockbuster video bought up every mom and pop video store some time back…
One concern that observers raise is partisanship and its effect on the AOL brand. Hmmm. Perhaps a little character is just what AOL is missing. And maybe Character alone might get them ‘to eleven’.
…By handing so much control over to Ms. Huffington and making her a public face of the company, AOL, which has been seen as apolitical, risks losing its nonpartisan image. Ms. Huffington said her politics would have no bearing on how she ran the new business.
The deal has the potential to create an enterprise that could reach more than 100 million visitors in the United States each month. For The Huffington Post, which began as a liberal blog with a small staff but now draws some 25 million visitors every month, the sale represents an opportunity to reach new audiences. For AOL, which has been looking for ways to bring in new revenue as its dial-up Internet access business declines, the millions of Huffington Post readers represent millions in potential advertising dollars.
“This is a statement that the company is making investments, and in this case a bold investment, that fits right into our strategy,” Mr. Armstrong said in an interview Sunday. “I think this is going to be a situation where 1 plus 1 equals 11.”