AOL~How the Mighty Have Fallen

(Begins at the 2:50 mark)

The above video has Sean Hannity and Brent Bozell discussion AOL and its buyout of the Huffington Post. A move that may prove to be the demise of them:

AOL stock sheds $315M — HuffPo price tag

You pay for what you get.

Arianna Huffington and Ken Lerer, co-founders of the Huffington Post, are said to be walking away with a combined $80 million to $100 million from an original $2 million per person investment — but so far AOL stockholders aren’t seeing that kind of return.

Since Feb. 1, the price of AOL shares has dropped from $23.85 to $20.89 at yesterday’s close.

With 106.7 million shares outstanding, that means AOL has shed $315 million in value over the last five trading days — which happens to be exactly the same price AOL agreed to pay to acquire HuffPo.

Most media observers viewed it as a pricey deal, since it is based not on the slim profit Huffington Post claimed it made in 2010, on $31 million in revenue, or the $10 million profit it is projecting it will ring up this year on $50 million in estimated revenue, but rather on the $30 million in profit it is predicting for 2012.

“I thought, from a financial valuation, it is a bit of a stretch,” said Clayton Moran, who follows the stock for the Benchmark Company….

…(read more)…

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