Blodget’s insights on HuffPost/AOL deal

MK: Can’t argue with any of the points made. I stick to my original thoughts that this will dilute the HuffPost brand, represent a loss of independence in an already overly-corporatized media landscape and finally; why bother? Huffington does not need the money. The whole point of being Huffington is that you don’t need the money so you can speak your mind. Taking the money knocks down that pedestal. Additionally, with this new benchmark for a content aggregation site, what would be the takeout premium for BusinessInsider.com? We know the employees work for nothing and are all holding out for a sale of some kind. This deal raises BI’s valuation considerably. Imagine Joe Weisenthal rich . . . . Oh my God, I shudder at the thought.

63 comments on “Blodget’s insights on HuffPost/AOL deal
  1. buddhagold says:

    Huff-Po has only been fun as a signpost for what liberal Sheeple are lapping up daily. Also their entertainment and sports sites are a welcome diversion. Gossip,gossip,gossip.

    But it has never been a serious investigative site of any breadth or depth and they are diehard Hopey McChange supporters over there having swallowed the Blue Pill from the beginning. A.P. made a cool 60 mill or so from the deal. In the last analysis one would have to be naive to think she would not value that over her ‘journalistic freedom’. To begin with she was never hard hitting and never really challenged power. Now she is regarded as a major power player because she has cashed in. This elevates her into new circles of respect in New York and Washington amongst the globalist minions. If she wants to run for office she has the cred now. If she wants to start some new company she will attract new venture capitalists like flies on shite. She has become a PLAYER and like M. Douglas said in Wall Street II, its all about the game.

  2. SAO says:

    I’ll take globalresearch.ca over Huff and Puff any day.

    It would be nice to see everybody’s “favorite sites” list for investigative reporting, new and info.

  3. flicks says:

    http://www.telegraph.co.uk/health/healthnews/8307569/Universal-flu-vaccine-breakthrough.html

    I’m very suspicious of anything like this. When anything regarding migraine shows as a ‘cure’ in MSM I contact the scientists involved and they usually tell me its hype. And we all know what Bill Gates plan is for vaccines. Aint no UK NHS nurse/GP coming near me with a needle.

  4. SAO says:

    @Max

    Sorry off topic, but is this true?

    U.S DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS – IN WRITING – IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SIEZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!

    http://dinarvets.com/forums/index.php?/topic/52464-do-not-use-safety-deposit-boxes/?s=3f56338c0c5362389c1b61c61ef208c5#ixzz1DHGjEVWr

  5. Mep says:

    I’d say about 9% of the posted comments on the HuffPost mainpage story about the deal are neutral or positive. Arriana ought to know that her audience/commenters add 50% or more of the value of that site in the first place. So if this deal goes bad, she can look forward to losing clicks and HuffPost account holders. Over the past few months, the moderation/censorship has got pretty heavy over there. If they keep it up, people are just going to assume that it’s happening because of the AOL buyout and are gonna just go elsewhere. No reason to keep adding value to a corporate entity for free and be censored–or data mined, or both–for the pleasure. HuffPost would be nothing if not for the community of commenters over there.

  6. flicks says:

    I remember seeing an interview with Arianna and Phil Angelides she suggested letting the blogosphere look at the evidence and Angelides kinda slapped her down and she just smiled, I thought Max would have absolutely ripped his head off. Arianna is a lovie who would be at home at the BBC.

  7. Zorro / London says:

    “Imagine Joe Weisenthal rich . . . . Oh my God, I shutter at the thought.”

    Glad to see, I’m not the only one with spelling issues without spell check Max…. Its “SHUDDER”…not shutter.

    Brain faster than typing eh!

    Unless of corse, this is an american term I’m not famiiar with, then I bow to your holyness and kiss your ring.

    You have just dipped from God like status…..but its reassuring.

  8. Mep says:

    @ Zorro / London – I spelled Huffington’s name wrong, and you spelled “course” as well as “familiar” wrong. Should we start an annoying spelling police committee on the blog?!

  9. SAO says:

    @Max

    Maybe my answer is in here:

    Homeland Security: Banking and Financial Infrastructure Continuity

    http://www.law.umaryland.edu/marshall/crsreports/crsdocuments/RL31873_09052003.pdf

    But where?

  10. naomi says:

    Huffington Post also screens comments heavily. You cannot discuss Israel any other light than just peachy keen.

    She is also has heavy connections to dear George Soros.

    I am a subscriber to Wayne Madsen Report and Wayne is a contributor to RT on many ocassions. I sent Madsen an email about Israeli Art Students coming to our office building and casing out our offices about 3 years ago, It seems that Huffington must have a list of commentors whose names are given to Israeli intelligence gathering …….. that’s why we had the visit. He said never trust Huffington Post.

  11. Mep says:

    oops, I missed the hyphen in “God-like status” and the apostrophe in “it’s”

  12. Mep says:

    @ naomi – Yeah, over the past 8 months, I started getting hit with heavy moderation . . . the worst of it was always on blogs about Israel. Don’t know why the douches even bother putting controversial articles up if they don’t want people discussing them. It’s a real shitty thing to post something to get a reaction and then turn around and delete all comments you don’t agree with. I can see it if they’re vile comments or in some way violate already set commenting standards, but that’s clearly not the case when HuffPost deletes comments.

  13. JonnyJames says:

    SAO: good idea. The FluffPost has become co-opted pablum that mostly cheerleads for one faction of the Kleptocratic Oligarchy.

    http://www.globalresearch.ca is also one of my favorites
    ohters are:

    http://www.counterpunch.org/
    http://www.blackagendareport.com/
    http://michael-hudson.com/

    and many other sites that are linked here on MK’s site.

  14. MirrorMirror says:

    … I shudder at the thought too !
    😉

    And I always thought Max was waiting for a 500 mio$ Buyout from GS or JPM … after continually annoying them so much !

    Am I wrong ?
    😉

  15. Zorro / London says:

    @ SAO

    U.S DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS – IN WRITING – IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SIEZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!

    This sounds major!

    All the more reason why not to deal with banks.

    Better to bury your valuables, make a pirates X marks the spot map, and keep a couple of copies in case of altzeimers.

    Regrettably, this is not funny at all and a very worrying development that Mr.Glen Beck would just love to know about and no doubt go crazy!

    You might want to email him.

    Copy in Mr.Celente and Mr.Prison Planet while your at it.

    I can see the phlegm dripping off the TV monitors when they get wind of, and cover this.

  16. MirrorMirror says:

    @Zorro … the “t” is not far away from the “d” on the keyboard … so I guess Max just had a typo !
    😉

  17. flicks says:

    They made sure this train was not late

    http://www.telegraph.co.uk/news/newstopics/theroyalfamily/8308719/Queen-catches-train-back-to-London-after-winter-break.html

    Its been years since I traveled by UK trains they were never ever on time. If you have to make a connection train you were always fucked. Total nightmare UK trains.

  18. Mother Earth says:

    huffpo has been a gop channel for quite some time now. The day they blocked Cenk Uygur from posting it was abundantly clear. Arianna likes to be rich.

  19. JonnyJames says:

    Naomi and Mep: I agree. FluffPost are largely a bunch of imperialist, racist, pro-Zionist assholes who routinely stifle the debate and delete comments. The occassional article by MK is the only reason I ever visited the site.

    http://www.commondreams.org is decent, although there are many cheerleaders for the D faction of the KO (Kleptocratic Oligarchy). At least they don’t delete comments critical about Israel.

  20. Zorro / London says:

    MEP

    Yeah, I know I’m crap, but the Führer!!!.

    I’m always up for the constructive criticism anyway, so thanks

  21. MirrorMirror says:

    Stockholm Syndrome In The Nile: 70% Of Egypt’s Employed Work For The Government

    http://www.zerohedge.com/article/stockholm-syndrome-nile-70-egypts-employed-work-government

    That probably means that NOBODY ELSE EVEN HAS A JOB !
    😉

  22. MirrorMirror says:

    Foreign hairdressers and estate agents face UK jobs ban

    Foreign hairdressers, estate agents and shopkeepers will be barred from working in the UK under proposed new immigration limits that will cut migrants by up to 10,000 a year.

    Well , goodbye London fashion scene …thank G*d … I mean Blankfein.

  23. MirrorMirror says:

    @Fluffington

    I wonder if all of Fluff’s “sources” are now on the blacklist ?
    😉

  24. dlweld says:

    A good spotting!
    It sure brings funny images to mind when I think of Max shuttering – is that like rapid blinking? I hope it’s not pink-eye. Seems the net needs a good homonym filter – I see lots of sites, I mean sights, all the tyme, I mean time, when I pour, I mean pore, over rightings, I mean writings. Good to keep this all keerect, despite what the troglodytes say – otherwise we lapse into incoherence and miscommunication. Keep up the good work Lobo! I mean Zorro!

  25. Zorro / London says:

    Mirror Mirror

    Lord, I wish I hadn’t mentioned it now.

    It was only yet another pitiful attempt on my behalf at humour with a hint of irony, which obviously failed miserably.

    So off to do the honourable (UK spelling!) thing…and shoot myself.

    My eyesight is not great, and can’t get the font size larger, so I miss stuff.

  26. SAO says:

    @JonnyJames

    Thanks for the sites.

    @Zorro / London

    I’m not sure how to verify if this is true (about DHS and the safety deposit boxes). Do you have any suggestions?

  27. Mike/Liverpool says:

    F*ck this Keiser!
    WHERE IS THE ROCKETTING GOLD PRICE?
    WHERE IS THE SILVER ROCKET?
    WHERE IS T.O.B ?

    ?????????????????????????

  28. Mike/Liverpool says:

    Me & “JP” are laughing at you!
    Mike

  29. JonnyJames says:

    Cheers SAO

    I forgot to include: http://www.projectcensored.org/

    If folks in the US think that there is a “free press” this site documents how the opposite is true.

    This is nothing new, books like “Manufacturing Consent” have been around a long time.

  30. JonnyJames says:

    The Adam Curtis documentary (originally aired on BBC2 in 2007) “The Trap” is a must-see .http://video.google.com/videoplay?docid=404227395387111085#

    Also “The Power of Nightmares” is awesome.

  31. lawrence says:

    One thing not mentioned is that by taking the deal now, and in cash, Ms Huffinton can sidestep any new rich people taxes that may be in the pipe.

    Heck, its what I would do.

  32. Zorro / London says:

    SAO

    “I’m not sure how to verify if this is true (about DHS and the safety deposit boxes). Do you have any suggestions?”

    Gerald Celente, Glen Beck & Alex Jones all have their own researchers.

    It might be an idea just to send them the material you have gathered and let their people do the donkey work, follow through and check it out.

    Who knows, if they dont know already?

    But then, they may not.

    If it holds water, I just tend to think this as a story, could be VERY BIG!

    And of course the mainstream wont cover it.

    More ammunition against the banksters.

    Gerald was getting even more emotional than usual about the TSA pat downs and scanners, so imagine the idea of his deposit box being officially robbed.

    Why dont the USA just announce once and for all…..today! we have torn up the American constitution and the bill of rights.

    Hope that helps.

  33. Gerrit Govaerts says:

    I get my geoplitical news analysis from http://www.antiwar.com/
    The site is funded by voluntary contibutions by readers
    I’ve long held the belief that the BBC was the gold standard , but lately I’ve seen too much biased reporting on the attack on the Gaza flotilla and operation Cast Lead .
    And as JonnyJanes already has mentionned , now that Helen Thomas has been silenced , just read Robert Fisk in The Independent .
    http://www.independent.co.uk

  34. jischinger says:

    I thought Huffington was sort of the semi-liberal-corporate-democrat answer to Drudge?

    Why would anyone, mostly her blogs base, post for free to profit AOL?

    Perhaps they want comments gone?

    Drudge has no comment section, but he’s headline driven. HP has fingers in all sorts of piles.

    Then there are all those people who work for free moderating the comments and those so called “pundits”

    Those are the people that drive her site and it seems right now a good number of them feel betrayed. Hard to really tell how many because they are moderating all comments.

    Least we can observe and collect more data to answer the question with this new experiment: Does everything AOL touches turn to shite?

  35. flicks says:

    “I’ve long held the belief that the BBC was the gold standard”

    Gold standard in what – they allow outright fascists to post on their blogs.

    A little taste from my large collection of blogs from notorious former BBC blogger Jaded_Jean:-

    “What went wrong? The simple answer is they (Germany) lost the war”

    “As to all the nasty Germans stuff, whilst no doubt some bad things happened, that works great to put you and I off statism doesn’t it, especially if you and I don’t discriminate much because we get all emotional. It’s like a massive ad hominem smear. ”

    The nasty German stuff = concentration camps

  36. JonnyJames says:

    Sorry, I screwed up my links for the A. Curtis documentaries (not shown in the USA)

    http://video.google.com/videoplay?docid=404227395387111085#

    http://video.google.com/videoplay?docid=2798679275960015727#

    I highly recommend these

  37. Gerrit Govaerts says:

    I forgot to mention the main reason for dropping the beeb as a source for unbiased news : their support for the Iraq war to the point of cheerleading it .
    I still see the images of a reporter standing in some mock up war room with maps on the wall , explaining the brilliance of the war plan of the allied forces , how wonderfull it all was and how shock and awe would blast those pesky Iraqi army units to smithereens . Not one second spent on the legality of this war under international law . not one second spent on the human suffering fall out . not one critical note . Objectivity is obviously the price Brits must pay for their “special relationship” with the Empire . And since Wikileaks we now know how serious the US views that “special relationship” . We will have to see how much future $ or £ value there is in that “special relationship” In the mean time the UK has managed to piss of many member states of the EU by siding with the Empire instead of trying to build a common foreign policy . Somebody needs to tell the UK that you are either in the EU or you are out . You can’t be a bit pregnant . Sometimes I have the impression that Brits do not identify with continental Europe at all , some kind of British exceptionalism rooted in the imperial era of the 19th century

  38. naomi says:

    @everyone, re: Huffpo.

    Huff and Puff is not only moderating, but giving your information to Israeli intel gathering aparatus for harrassment.

    Not only have we gotten cased at our office, but phone calls that are very explict in their implication that my husand and I are anti-semitic. Yeah……real harrassment. No, we are KKK members or hollicaust questioners (if that was a crime)

    We have also gotten a mailing of a Jewish writing journal (my husband has subscribed to other writing journals, but not that one) The one article that stood out in that mailing was an article that it was not “good” to criticise Israel. Yes, this is all true. This is what is going on people.

    The message was clear “we know where you work, where you live and what you do, be careful” Very creepy, very troubling and it’s getting worse. We as of late have not had any “contacts” but we know when anything happens in this country on a major level, we are going to be visited. And I suppose there’s a FEMA camp that is for people like ourselves waiting.

  39. Oky1 says:

    Maybe someone has already said it here, but I say it now.

    If you didn’t know it before you do now, the Huffington Post has completely sold out to the Wallst Banks/Insurance company’s economic terrorist.

    Right is an excellent time to go talk to their writes & posters ask them to leave the Huff/Post & come to your site or elsewhere.

    Crash JP Morgue, Buy Silver

  40. JonnyJames says:

    Gerrit Govaerts:

    I agree. When I was living in Maastricht, I got BBC1-4 and a bunch of other English-language channels on basic cable.

    I watched the 10 O’clock News on BBC1 regularly and sometime around 2006 I saw an interview with a woman from Chatham House (so–called think tank) saying that Hugo Chavez “is a dangerous dictator”. No one on the show presented the fact that Chavez was elected in internationally-observed elections including the EU, Carter Center etc.

    This really blew me away that they could get away with such a blatant LIE. The fact that they invited a person who would so blatantly destroy their credibility really surprised me at the time. Of course as you point out, their credibility was already nil.

  41. Gerrit Govaerts says:

    @JonnyJanes
    The only programs still worth watching on the beeb are everything coming from the hands of David Attenborough , drama , and comedy . And at least you can enjoy that without a 5 min commercial break after each 10 minutes . How yanks can tolerate that kind of mental abuse is beyond me ; it’s outright torture . On my business trips to the US , I could not bring myself to undergo that kind of pain ; The TV set in my hotelroom was always off . Maybe it’s different on some channels , i dunno . But I do know we have strict laws on that over here .

  42. JonnyJames says:

    Gerrit Govaerts,

    That’s why I do not watch TV here in the imperial Homeland, I do not have cable and I watch things online. People have been conditioned over many years to accept brainwashing.

    I tell my friends in Belgium, many of whom still think Obama is different than Bush, how things really are here. Many have a difficult time believing me, it seems they have been sold a false image of “America” by Hollywood and US TV.

  43. Apocalypto says:

    @jischinger

    “Drudge has no comment section, but he’s headline driven.”

    I guess you aren’t aware of his other site, which is very much comment driven.

    in fact, as it regards the ridiculously stupid and fake left/right paradigm, this is where intelligence comes to die in American politics:

    http://www.drudge.com

  44. Talcott says:

    @Mep

    Aye I don’t even bother with posting on Huffpo anymore. What’s even more comical is when they don’t publish your comment but steal your idea…..rofl.

  45. Gerrit Govaerts says:

    @JonnyJanes
    You may think I am exagerating , but I do have the impression that it is beginning to have a deep impact on the psychology of the average US citizen . In many conversations I had the impression to be talking to a zombie , a 2 dimensional caricature of real human being , the utter shallowness of it . During longer 2 week trips , my Dutch colleague and I just the crossed the border into Canada to regain a sense of normalcy . It pains me to admit it .

  46. Tao Jonesing says:

    Blodgett is missing one important fact: from an accounting perspective, the deal is probably already accretive. The fact that AOL used cash instead of stock means (1) the deal is not dilutive and (2) the cost of the deal will be capitalized over a number years (probably on the order of 10 years). If the amount of profit that HuffPo is pulling down exceeds the annual depreciation associated with the purchase, which it likely does, then the deal is accretive.

    When a public company acquires a private company, there are a couple of rules of thumb. First, if the private company is not turning a profit, you price it at 2x-3x revenue. If Huffpo is not turning a profit, this implies a $100M in revenue. Second, if the private company is turning a profit and the public company is not (i.e., the public company has no P/E ratio), a reasonable P/E multiple to apply to the private company depends on the comps in the industry. Here, a range of 10x-20x Huffpo earnings seems like a good fit, and with the all-cash deal removing the risk of stock performance, I’d guess the multiple is between 10-15x, which implies annual earnings of $20-30M for Huffpo.

    AOL is down over 3% today (over twice the deal cost, in terms of market cap), which means that the market doesn’t really understand the economics of the deal. This makes AOL look like a good trade to me, particularly with the addition of the Huffington brand.

    As to Huffington herself, she proved to be a typical neoliberal narcissist long before she sold out HuffPo. Her slobbering self-aggrandizement over her attendance of Davos was the final nail in the coffin for me. I still like the persona she emits and some of the things she has to say, but everything I hear from her passes through my neoliberal filter, particularly her “neo-pogressive” pap.

  47. Hill says:

    Huffin-Muffin will now become a regular guest on Leibowitz’s Daily Show.

  48. JonnyJames says:

    @G. Govaerts,

    No exaggeration, I agree, I was born and raised here in the Imperial Homeland, and I know full well of what you refer. Painful yes.

    The truth does indeed hurt. I live in the supposedly “progressive” SF Bay Area where some of the most educated and wealthy folks on the planet live. Yet, most folks I talk to are completely blinkered and have very little clue as to what is going on.

    To be fair, there are some here who are way ahead of the curve, however not nealry as many as one would expect. One of the few redeeming factors of living here is the natural beauty of California and he weather. Today is another sunny day and 23 C. Yesterday was 26C.

  49. michael sam says:

    Can you sell out just a little or will it spread beyond the most important issue of all, Israel

  50. F. Beard says:

    Imagine Joe Weisenthal rich . . . . Oh my God, I shudder at the thought. Max

    Well, he might then buy a sports car and we all know what that means.

  51. Nixter says:

    Also, Arianna stole the manuscript-life work of her secretary on Picasso, and paid millions, but you will find it hard to track in info, including the ariticle in Vanity Fair that was the expose.

    Yeah Ariana you are some piece of work.

  52. rake says:

    huffington is an opportunist, among other things. but she’s first and foremost an opportunist:

    she serves no higher cause unless it serves her ambitions toward money and fame. she plagiarized lydia gasman’s book for her picasso book. she stole the idea of huffpo from others. i have a source for the former instance; you can look both up. she used to be on the right, now she’s on the left. where will she be tomorrow, and why will she be there? the person she married (michael huffington) himself had money and power – exactly, and only, what she wants.

    the qualities of huffpo were incidental.

  53. gussy says:

    I’m curious Max, will you still be posting on Huffington Post.

    As for the beeb, yes of course it’s the propaganda machine for the Brits, but they don’t half produce some cracking comedy, come to think of it they also do some shit hot documentaries.

    As for sleazeanthal, unctous little git, I’m always left feeling like I need a hot shower after watching him, uggh just writing about him gives me the shuddders.

  54. Apocalypto says:

    gussy the windsurfer? Is that you?

  55. gussy says:

    @Apocalypto, perhaps, I’m certainly no stranger to wind, something I share with many commentators, and dare I say M&S.

  56. Dark Markets says:

    Thanks Naomi (at 7:46 pm, and earlier) – I tried sayin’ the same thing, but I guess I was “over the top.” There’s no doubt who wuz running DHS, FEMA, and DoJ under cheney & bush: it wuz Chertoff, “Heckuva Job Brownie” and Mukasey – all lovey-dovey with Blackwater in Iraq, AND in New Orleans.

  57. The main thing that I want to know is, when they say that Arianna will become the editor of AOL media, meaning that she will retain editorial control of HP, is that a lifelong appointmen
    ­t; will she get to choose her successor? As long as she remains in control of the Post, to me it retains its integrity. If the AOL honchos ever take control of the content on HP, then it will just be another part of the MSM.

    As far as the “red tide,” I don’t necessaril­y see it as a bad thing to bring together people of widely differing opinions on one site. The problems could come if there are discussion­s that are specifical­ly relevant to one group of people, and trolls start coming in and disrupting it. I hope that there will be (or already is) some method of preventing that, so that, basically, if people in the same general camp are attempting to debate the subtleties of an issue, they won’t be interrupte­d by people trashing their entire political philosophy­.

  58. Anything AOL touches or is involved in — dies – dies a horrible death – bye – bye Hufftington – the insane psychopath’s are doing it again.

  59. Brain Mohel says:

    arianna huffington SOULED out…

    it was a crappy paper not even good for virtual fish’n chips.

    I printed the home page to wipe butt with it this evening.

    it doesn’t really matter

    this is what’s its all about : http://en.wikipedia.org/wiki/Olduvai_theory

    Future generations will be scavenging garbage dumps for ipads and iphones for precious metals.

  60. jischinger says:

    I did a little test – they are getting very strict with the comments.

    Unless you agree or reflect a positive spin you are put on watch.
    Links are held auto.

    A big empty hole just waiting to be filled by someone

  61. jischinger says:

    Do people who post in the blog section at HP get paid or receive some compensation for their time?