AOL Inc. (NYSE: AOL) is back in the headlines despite shares being in a downward spiral since November 2010.�� This once mighty Internet giant, well known for spamming “log on” discs via the U.S. mail to every residence and homeless person in America, never regained its dominance after its ill-fated Time Warner (NYSE: TWX) buyout.� Free services, unique content and rapid change in the field basically left this lumbering giant struggling to regain market share.� The company effected many changes that allowed it to begin to compete once again in the same arena it dominated in the past.� The stock climbed to $27.50 per share in November 2010, in a solid uptrend prior to starting the current down trend leaving shares gasping at just above $20 per share.
It seems that AOL has finally realized that edgy, controversial content is what sells on the Web.� Tired old firms like Time Warner just didn’t have the pedigree to attract much attention from the new breed of Internet user.� Now, AOL just cut another giant content deal with the Huffington Post.� The controversial, politically volatile media group is the brain child of uber provocateur and marketing genius Adrianna Huffington.�� AOL is paying $315 million for the acquisition.� Under the agreement, Huffington will join AOL as president and editor in chief of a newly formed media group.� The hope is that she will enable AOL to build a brand similar to Rupert Murdoch’s News Corp.� (Nasdaq: NWSA). Hiring this firebrand front person and acquiring the new company should result in 270 million unique visitors per month.
George Bell, CEO of mobile ad company Jumptap Inc., told Bloomberg, �It�s probably time to get aggressive. Why not shoot the moon on content? The advertisers want to go where the quality audiences are, especially in display.�� I completely agree with George.
This move by AOL, although risky, is likely to be the best thing they have ever done.� Lot’s of people are betting on it.
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