Verizon continuing their retreat from digital media has announced they are seeking a buyer for The Huffington Post. Acquired during the acquisition of AOL in 2015 the outlet has since failed to once generate a profit for the tech giant. After years the result is Verizon’s disillusionment with the revenue potential from digital media groups, alongside the continued interest in holding on to the media outlet.
The Huffington post was acquired in 2015 with the $4.4 billion purchase of AOL as part of Verizon’s expansion into digital media groups as a new method of revenue generation. Simply put, major corporations do not grow naturally in accordance with market or capitalist principles, but instead through acquisition. As legacy companies saw their relevance continue to decrease in the 21st centuries many turned to acquiring the at the time profitable network of digital media sites. With the express aim to have them generate profit and future proof the company to please investors.
This plan of course didn’t work as Verizon failed to implement any needed or otherwise overhauls to their acquired sites. As anyone who has watched a legacy site die to be replaced with a newer iteration created by fans of the original can will attest the boon brought by the bevy of long since desired features to the new experience was immense.
In counter to nature of their growth we see major companies acquire and idle on their sites. When Yahoo acquired Tumblr in 2013 instead of adding long needed features such as lists, filters, WordPress-style custom blog designs, the company sat on the website destroying its value. In 2015 when Verizon acquired Yahoo its brilliant move was to remove porn from the website resulting in a loss of a third of the audience and the subsequent sale price of just $20 million dollars .
In similar fashion Verizon did little to overhaul the Huffington Post. Once held in repute as a trustworthy source of news the site became little more than a politicized rag often openly mocked by the average person, and unashamedly shilling for the DNC, resulting in them becoming the butt of many a Youtuber’s joke. Rather than course correct or restructure, Verizon laid off employees across both The Huffington Post and everyone’s beloved Buzzfeed.
Now according to the Financial Times Verizon is simply done owning the website and is seeking potential buyers to own it. After writing down $4.6 billion in value the news site is likely to sell more in line with the value decline seen with Tumblr rather than anything approaching the billions paid for by Verizon years ago.
There were no potential buyers listed, but One Angry Gamer have submitted a generous bid comprising of the grand total of what we had in our wallets at the time and some change found in the couch. Whether Verizon will except our overpriced bid of $53.23 is still up in the air, but we’ll keep you informed on who inevitably buys the media giant.