Huffington Post in Limbo at Verizon - NYTimes.com - 0 views
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The Huffington Post sits at the center of a phenomenon that some describe as the birth of a new media establishment: Several digital start-ups, including BuzzFeed and Vice, are trying to upend news presentation the way cable channels encroached on broadcast television in the 1980s. By that measure, some in the industry say, $1 billion is a reasonable valuation for a site with more than 200 million unique visitors a month, and acquiring it is a smart play for Verizon as it follows other communications companies, like Comcast, in owning its own content.
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Others see, instead, a frothy market that has led to overly high valuations for media companies, based largely on branding and a relentless focus on audience development techniques. Photo
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According to a document published in 2013 by the website The Smoking Gun, The Huffington Post was expected to generate $60 million in revenue in 2011, when AOL bought it, with $10 million in Ebitda (earnings before interest, tax, depreciation and amortization) growing to $165 million in revenue and $58 million in Ebitda by 2013. People with knowledge of its current finances said that its annual revenue is now in the hundreds of millions, and that its profitability depends on how generously its recent investments in a global expansion and video are assessed.