The Huffington Post co-founder, who sold his site to AOL a year ago, is working on another Web news start-up. But Lerer isn’t trying to replicate his old site. Instead, he’s trying to create a digital video news operation built to attract a generation of Web natives who watch Jon Stewart but not CNN or Fox News.

People who have heard Lerer pitch the start-up say he has been vague about the details but broad about his ambitions. Here’s what I know for now, which doesn’t include the project’s name:

• The site/service is a joint venture between Lerer’s Lerer Ventures and Bedrocket Media, the video start-up that Lerer invested in last year.
• Lerer is telling potential investors and employees that he’ll be actively involved in the project, along with former HuffPo CEO Eric Hippeau and Bedrocket’s Brian Bedol.
• The service, which will launch this summer in advance of the U.S. presidential elections, will use a mix of livestreaming video and taped reports, and a mix of professionally produced segments along with contributions from amateurs.
• While Bedrocket has landed four YouTube “channel” deals for its programming, the new venture won’t be confined to any particular platform. Lerer and company have been promoting the idea that the service will rely heavily on social media like Facebook and Twitter for distribution.
• The site/service has started hiring production/back-end staff but hasn’t brought in “on air” talent yet. When it does, it will likely look for relatively unknown reporters, not established/expensive TV folks.

There are plenty of other folks trying to figure out how bring TV-style news to the Web, including the TV people themselves. And Web sites that have their roots in “print” journalism are diving into video news, too. That formula usually involves positioning a couple reporters in front of a newsroom camera to discuss the day’s events (if you’d like to see me talk, for instance, I’ll be on The Wall Street Journal’s “Digits” show at 1 pm ET today). Interesting to see if Lerer and company can figure out a new take.

(Image courtesy of Shutterstock/Daboost)

In an effort to minimize the impact of massive layoffs that Yahoo’s top management has been planning, according to sources close to the situation, one of the latest ideas to save costs and presumably jobs by new CEO Scott Thompson is to sell off much of its advertising technology platform, including Right Media.

And among the possible buyers Thompson has been targeting in recent visits: Google and Microsoft, as well as Silver Lake, the private equity firm that had once been talking to the Silicon Valley Internet giant about making a large investment in the company.

(That particular deal has gone south, but there is always yet another scheme on the horizon at Yahoo!)

The concept behind such a sale, according to several sources inside and outside the company, is to turn a cost center into a revenue source, with Yahoo essentially outsourcing a business that was a cornerstone of its strategy. A negotiable number of employees affiliated with those units would then move over to the new owner.

The most ideal plan, said sources, would be to sell Yahoo’s whole advertising technology “stack,” including the Right Media Exchange, a marketplace for advertisers, publishers and ad networks to trade online ads. Yahoo bought it for $700 million in 2007.

According to info on the company’s site, it has “300,000 active global buyers and sellers and more than 11 billion daily transactions.”

Also part of the possible package is APT, a system Yahoo has built to make buying and selling online advertising easier. In addition, Yahoo’s technologies for display-ad serving have been mentioned as a possibility for sale.

It’s unclear what the potential sale means for the new ad strategy that U.S. boss Ross Levinsohn and his lieutenant Jim Heckman have been pursuing since last summer. That plan included its own acquisition of ad network Interclick and an attempt to sync up with rivals AOL and Microsoft in an effort to fend off Google and some third-party players, like ad networks.

But the reason for contemplating much a major move — which has been considered before, but never has been seriously offered — are obvious: While Yahoo once dominated this arena, it has steadily lost ground, especially to Google. The search giant has made almost all of its money in search-related ads, but has been moving aggressively via its DoubleClick and other ad-serving entities into higher-level ads.

Microsoft has also been trying to compete, as has AOL, but it’s getting to be an expensive race, and one where Yahoo would have to make major investments to once again gain momentum. Building up this business again had been the aim of co-founder Jerry Yang, who wanted to go big in the arena in a number of ways before he left the company earlier this year.

But those days seem to be over at Yahoo.

“A lot of what has happened so far under Scott [Thompson] has been trying to find more revenue anywhere it can be generated, and get out of businesses that are not growing,” said one person. “Right now, it’s a lot about what we shouldn’t do rather than what we should.”

That has meant visits to see both Google and Microsoft about possible deals by Thompson, with the involvement of CFO Tim Morse and Chief Product Officer Blake Irving.

Thompson (pictured here) has also recently been talking to Silver Lake about the ad-platform sale, in a deal that might include the Andreessen Horowitz venture fund. This would be a different kind of transaction, said sources, in which a separate company would be formed, with Yahoo owning a piece and contracting with the new entity to provide ad technology.

All this activity is related to the layoffs in the works of perhaps thousands of employees, which were to have been communicated to the company this week.

Sources said those have been delayed for some weeks for several reasons, including whether to consider more deeply if certain larger business units can be spun off, sold or somehow transformed. (To be clear: Major layoffs are still being planned, but now might take place in two parts, said sources, in what is a quickly changing and volatile atmosphere at Yahoo.)

Another area being looked at, said sources, is Yahoo’s search advertising partnership with Microsoft, which has not been as successful as had been expected. While Yahoo has been working with the software giant about improving the results, Thompson has apparently been contemplating other possibilities, including working with Google (calling all regulators!) and/or laying off up to 900 employees who work on the company’s search offering.

Any of these moves could, of course, cause a firestorm of controversy, which Thompson appears to not worry much about. He was the driving force in Yahoo’s patent lawsuit against Facebook earlier this week, which is largely attracting a negative reaction across the tech landscape.

A number of prominent voices have spoken out against the legal action, including well-known VC Fred Wilson, who yesterday penned a poisonous blog post, titled “Yahoo Crosses the Line.”

It ends thusly: “I am not writing this in defense of Facebook. They can and will defend themselves. I am writing this in outrage at Yahoo! I used to care about that company for some reason. No more. They are dead to me. Dead and gone. I hate them now.”

Ouch!

Also weighing in publicly via Twitter was former Yahoo director Eric Hippeau, who was one of the company’s first investors, which is embedded below:

Pathetic and heartbreaking last stand for Yahoo bit.ly/yirCcj It’s all over. I loved you very much.

— Eric Hippeau (@erichippeau) March 13, 2012

Double ouch!

All I can say is that Thompson certainly has a lot of gumption. That has actually been his M.O. from the start, said several sources, with the former president of eBay’s PayPal payments unit and dark horse cold-emailing his way into the Yahoo CEO job.

True story: He had not been among its list of possible candidates — largely because he had been placed in his job at eBay many moons ago by Heidrick & Struggles, which was conducting the Yahoo CEO search, and that’s a talent acquisition no-no to poach someone you placed.

That did not stop Thompson, who thought he might be good for the job and reached out directly to board members at the end of the selection effort, which then led to the search committee and soon enough to the job in what was a very quick vetting and secretive (although not secretive enough!) hiring process.

Since then, Thompson has been on a tear, from working on a restructuring to trying to assuage activist shareholder Dan Loeb to helping put the kibosh on its Asian stake sale talks to suing Facebook. And now this sale effort, too.

If the peripatetic Thompson — who might need a dose of Ritalin before this thing is over — wanted to get noticed by the tech powers that be: Mission accomplished!

“He’s definitely someone who appears to have decided on shooting the moon with a lot of these actions,” said one person close to the situation, referring to the move in the card game of Hearts, which is a risky gambit to capture every penalty card worth 26 points in order to win. “I just hope no one loses an eye in the process.”

(That would be triple ouch, by the way.)

No comments all around, but everyone was certainly cordial on this rainy morning.

Berry, who had been Huffpo’s chief technical officer, stepped back from day-to-day duties in November; at the time, the company said he’d be “working closely” with Arianna Huffington “on strategy and expansion priorities.”

Now Berry says he will be leaving in February — which happens to be a year after the AOL/Huffpo deal was announced. Berry will be working on Rebel Mouse, which he described to the New York Observer as a “social platform,” and will also work on a start-up incubator.

As the Observer notes, the move will reunite Berry with a good chunk of Huffpo’s senior team — co-founders Ken Lerer and Jonah Peretti, former CEO Eric Hippeau and former ad chief Greg Coleman. Most of that group left Huffpo as soon as the AOL deal closed.

Peretti, who now runs Buzzfeed, a son-of-Huffpo aggregator/news site with a flair for social media, credited Berry with much of Huffpo’s success, via a Twitter blessing:

When Paul Berry joined HuffPost had 3M UVs, today the site has 120M million & he deserves LOTS of credit for that growth

— Jonah Peretti (@peretti) January 10, 2012

[Shutterstock/Kutlayev Dmitry]

The firing of Yahoo CEO Carol Bartz leaves open one of the bigger and more difficult jobs in tech — one that has taken its toll on many.

Nonetheless, rapper Snoop Dogg stepped right up to the Twitter plate yesterday, as soon as news broke of the ouster.

Tweeted Snoop Dogg:

“Im takn over as tha CEO of Yahoo. Need sum of tha Snoop Dogg content ya digg. Nuff Said.”

Not nearly nuff!

Thus, while the Yahoo board has yet to begin a search, I have already been hard at work on selecting the next CEO.

(Last time, the company took none of my suggestions, but after the most recent result, the directors might want to pay mind!)

Sources said Yahoo is looking for an experienced Internet type, either from inside or outside the company.

“Yahoo has put its flag in the ground as a digital media company with a technology base,” said one source. “The job requires big buckets of expertise and needs someone who will grow the company.”

Here I go with the outsiders:

Peter Chernin: The former News Corp. exec has been eyeing Yahoo for a possible takeover with other investors. Both Yahoo and I had picked him when co-founder Jerry Yang stepped down as CEO almost three years ago, and he had declined the offer. This time, perhaps a big chunk of the company and total autonomy would work, even if making a hit like “Rise of the Planet of the Apes” is more fun.

Sheryl Sandberg: The COO of Facebook is sort of the anti-Bartz, with a smooth and efficient persona, and she is an experienced tech exec. But the former Google exec is at a place of growth at the social networking site, and is unlikely to want to leave the big show, especially since a blockbuster IPO is looming.

Jason Kilar: The Hulu CEO is in the midst of the process of selling the premium video service, with Yahoo as a bidder. While he has some tense relations with the studios, Kilar is top notch in his dedication to consumer products, and has a lot of experience from his stint at Amazon, too.

Dan Rosensweig: Currently CEO of IPO-headed Chegg textbook rental service, the former Yahoo exec never got a chance to run the company as its top leader. Well-connected and still well-liked by the troops at Yahoo, it still would be pretty hard for him to go home again.

Dave Goldberg: Sure, he’s married to Sandberg (see above), but the savvy CEO of polling phenom SurveyMonkey is one of the sharpest thinkers in Silicon Valley. He sold his music company to Yahoo many years ago and has a strong background in consumer online services.

Jon Miller: The chief digital exec at News Corp. almost got the CEO spot years ago when Carl Icahn was agitating for change at Yahoo, before Time Warner blocked him via a noncompete. With the mishegas at the media giant, and dwindling digital businesses there, it might be a good escape hatch for Miller.

Susan Wojcicki: The accomplished Google exec, who runs all its ad products, has the kind of calm, cool, collected persona that Yahoo could use right about now. The search giant was founded in her garage, and she has been a key part of its success since then. Wojcicki is also an understated class act in hey-look-at-me Silicon Valley.

Todd Bradley: The Hewlett-Packard exec just got blindsided when the company kicked webOS to the curb. While he is in line to run a possible spinoff of the device business, Bradley might also want to jump out of the frying pan into the fire.

Mike McCue: The CEO of Flipboard would certainly energize Yahoo with his intense focus on quality and consumer delight. The news app start-up could be a good addition to Yahoo, and McCue, the former Netscape and Microsoft exec who is well-liked in the Internet scene, would be, too.

Joanne Bradford: The former Yahoo advertising head bolted Bartz’s regime early on to run revenue for Demand Media. Well-liked in the ad business, she also knows where all the bodies are buried at Yahoo. Since ads and media are key at the company, she’d make an interesting choice.

Yusuf Mehdi: The Microsoft online exec would also be a left-field candidate to run Yahoo, given his even-keeled personality and longtime experience in the sector. And, though pricey, Mehdi’s impact on Bing search has been important. But he’s also been involved in the software giant’s lackluster ad and search partnership and still has not turned around the situation at MSN.

Kevin Johnson: The former Microsoft exec and current CEO of Juniper was once slated to be the CEO of Yahoo, had Microsoft managed to win the company in its hostile takeover attempt. In fact, Johnson was the architect of the idea of Yahoo running the media and Microsoft running the tech.

Tim Armstrong: Well, he might have been a good candidate before the downward slide of AOL and a recent series of questionable judgments. If Armstrong can’t keep a loud tech blogger in line, it’s not clear he can wrangle the Yahoo beast.

And here’s the insider scoop:

Ross Levinsohn: The former News Corp. exec is running the Americas for Yahoo, which puts him in charge of the company’s key businesses. But he’s still struggling to turn the ad business around, and how well he does that could be a major determinant of his success. But fantastic hair!

Blake Irving: The former Microsoft exec has an amiable nature and is well-liked at Yahoo, but he still needs to show that the company can ship some innovative products, and quickly. Like Livestand, the news reader, which is muchly late.

David Kenny: The Yahoo board member is now president of Akamai, which might preclude him from the job. But the well-regarded exec — he’s a snazzy dresser, too — ran one of the Internet’s top digital ad agencies and now has tech chops from the content delivery network.

Memo to Yahoo board: I have a million more ideas, from former Viacom exec Tom Freston to former Yahoo board member Eric Hippeau. Or why not bring back a passel of former Yahoos to advise, such as former CEO Terry Semel or former president Sue Decker?

Or Oprah! I hear Winfrey will be in Silicon Valley later this week, and she has a lot more free time now.

Like Snoop Dogg, she would fo shizzle be the bomb to cover.

Related posts

• As Yahoo Continues to Wobble, Investors (And Board) Eye Options
• Exclusive: Carol Bartz Out at Yahoo; CFO Tim Morse Named Interim CEO
• Carol Bartz’s Last F%*& You — Now Aimed at Yahoo Board
• Yahoo’s Statement on Bartz Ouster
• Wall Street Likes Bartz’s Firing — Yahoo Stock Spikes on News
• My Picks for Yahoo’s Next CEO — Maybe Snoop Dogg, Ya Digg?

One of the more interesting pieces of news that got pushed deep down in stories in the noisy swirl around AOL’s $315 million acquisition of the Huffington Post was the move of its CEO Eric Hippeau back to the investor side.

He’ll be going to Lerer Ventures, which is run by HuffPo co-founder, chairman and major investor Kenneth Lerer.

(In case you wondered: Yes, everyone is interconnected.)

Before landing at HuffPo in mid-2009, Hippeau was a high-profile venture capitalist at SoftBank Capital for many years, starting with his involvement in the legendary $100 million investment in Yahoo at its start.

Hippeau went to SoftBank Capital after selling Ziff-Davis to its parent SoftBank Corp. for $2.1 billion in 1995.

Now he is headed to Lerer, where Hippeau has been an adviser. It which has been run by Lerer and his son Ben–as well as VC and entrepreneur Jordan Cooper–as an angel investing at early-stage seed level.

About a year ago, the New York-based investment fund raised $8.5 million, all from friends, and has focused on 35 start-ups in the city.

Those have included GroupMe, a group texting service, and ad service AdKeeper.

Now, with the addition of Hippeau as a general partner, while still spending down the initial fund, Lerer Ventures is considering a second fund of up to $50 million to allow it flexibility to invest in later stages.

That’s an increasingly common strategy of late, most prominently at Andreessen Horowitz.

“I am really glad to be getting back into investing, since the New York area is especially vibrant at the moment,” said Hippeau in an interview today, who noted that Lerer Ventures also has some investments in Silicon Valley. “And we are really determined to look at changing the way funds are organized.”

And now that he’ll not have a job with the AOL buy–”It has a very good CEO in Tim Armstrong,” joked Hippeau–and having just also stepped down from the Yahoo board, he will have plenty of time to consider all that.

Hippeau listed social, mobile and commerce as big investment arenas, as well as companies related to tablet devices.

“At the Huffington Post, we could see the changes happening to how we distribute our content were becoming profound,” Hippeau said. “It’s a completely different experience.”

I also talked to Ken Lerer, who said that the fund–started off pretty simply–will be trying to define itself more in the coming months before fundraising begins.

“Ben and Jordan are especially plugged into the New York scene–these start-ups were created by their friends,” he said. “And Eric and I bring a different skill set and perspective on top of that.”

Lerer also expressed interest in commerce, as well as local and real-time technologies.

“While it is always an interesting time on the Internet,” he said, fresh from the AOL sale of the HuffPo, in which he was the largest individual shareholder. “But right now is a really interesting time.”

AOL CFO Artie Minson prepped investors for the call with a memo laying out expectations. Short version: AOL thinks HuffPo will earn about $10 million on revenue of $50 million this year (as long as you’re okay with using “adjusted OIBDA” as a proxy for “profit”). It also thinks the purchase will save it $20 million a year, but it’s going to spend around $20 million on restructuring charges when the deal goes through.

I’ll liveblog the call below:

8:02 am: Greetings! About to start now.

8:03 am: On the call: Tim Armstrong, Arianna Huffington, Artie Minson.

8:03 am: Armstrong makes a Super Bowl joke that I can’t quite follow, and I like football. But now praising Arianna, co-founder Kenny Lerer and outgoing AOL CEO Eric Hippeau.

“The Huffington Post is one of the best properties on the Internet.” Armstrong, Huffington and Minson are all BlackBerry users.

8:06 am: On revenue: This gives an opportunity to serve more brand marketers, who are “very interested” in the scale this gives us.

8:07 am: Spending next 30 days on integration. “Really synergies to be had.”

Next steps: Next 72 hours communicating with employees, talking to partners. 1,500 AOL workers on the phone this morning explaining deal to others.

“This may be the smallest disruption” internally of any deal I’ve worked on. Majority of integration done within 35 to 40 days.

8:09 am: We’ve looked at a bunch of companies, though we’re mainly going to concentrate on organic growth. But Arianna is great [many superlatives] and she “also happens to be a woman.”

8:10 am: Here’s Arianna.

8:11 am: “Amazing” how aligned two orgs are.

8:11 am: HuffPo was profitable last year. We were thinking about bringing in additional investors last year, and an IPO down the line. But this made perfect sense.

8:12 am: This deal provides a “dramatic acceleration” for the plans we already had.

8:13 am: Some praise for Patch, AOL’s local strategy.

8:14 am: Can’t wait to start!

8:14 am: Alrighty, then. Here’s Artie Minson with some nuts and bolts.

Actually, it’s some color on the deal. But a lot of it is in the prepared remarks he put out earlier this morning.

8:15 am: Again, $20 million in cost savings here. And again, we’ll have to pay up for restructuring: $20 million for cuts, and $10 million for purchase price.

8:17 am: Still basically reading from prepared remarks. Some bookkeeping talk re: compensation accounting.

8:18 am: Remember, display ad growth coming will finally start showing up second half of this year.

8:19 am: Q&A:

Q: Talk about content strategy. Does HuffPo become hub for content going forward? Does it replace Seed? And how long is Arianna’s contract?

A: “The press” has been talking about our content strategy, so let me be clear–we’re focusing on premium content. Things like Seed and StudioNow are platforms–you can do whatever you want with them, different quality levels, at different types of scale.

And then the other thing that is important about those platforms is the ability they give us to work with advertisers.

One of our main interests in HuffPo is their technology and publishing system. So now we have multiple systems [which he is saying is a good thing]. “Our content strategy hasn’t changed.” The “stuff that was out in the press about the AOL Way” was just one way of doing things. [This is not very convincing]

Arianna, tell us how long you’re going to stay.

8:24 am: Arianna: “I’ve told Tim I want to stay here forever. I want this to be the last act of my life.” Anything I want to do I can do here.

[Sorry, missed next part but it was a defense/explanation of content strategy.]

8:26 am: Armstrong: Arianna has a multiyear contract, but it’s open-ended.

8:27 am: Arianna: By the way, we’re going to bring back commenting to AOL stories, and socialize them.

8:28 am: Q: Why buy instead of partnering? Were there other bidders? Also, how will HuffPo politics affect AOL?

8:28 am: Armstrong: We do partnerships where there is “limited upside to those arrangements” so ” we can really spend time on the areas we want to win”–i.e., we don’t care about sports, we do care about women.

“Arianna is somebody we’d rather have inside our building than outside our building.”

“If there were or weren’t bidders on the other side,” I think we got the right price.

8:30 am: Arianna. “As we’ve said, again and again, Huffington Post was not for sale….Nobody was in a hurry to cash out, everybody believed that we could do an IPO down the road.” It’s just that Tim gave us a great offer. [hrrrm.]

On politics–we used to be all about politics, now we’re not. Just 15 percent of our traffic. We have a divorce section now.

Talking up AOL’s “college” section.

8:33 am: Q: For Arianna: More on Patch, please. What do think about what AOL’s done with it, and what you can do with it?

8:33 am: [Every time Arianna says "local level" I think she's saying "locker level." It's happened at least twice, maybe more, on this call.]

There’s a “greatest person of the day” feature we have, and I think Patch should use that. [Or maybe vice-versa, sorry.] I also like their five percent “giving back” rule, cause marketing, etc.

8:35 am: Armstrong: Again, we can do national and local. That’s important. NFL rights are important, and so are local news stories.

8:36 am: Q: Who’s going to sell what? And can you talk about pricing disparity between AOL and HuffPo?

8:37 am: Armstrong: “We would like to maintain all the people from both sales forces [except for Greg Coleman!]. I think we will end up with a large-scale, large-property organization–I don’t know exactly what that’s going to look like, though.

On sell-through rate: Slightly lower at HuffPo, because they’ve been ramping up traffic, and sales force. On CPM, same story. So we can bring up sell-through rate and CPM, and have a larger sales force. [This is pretty much the best argument for the deal that Armstrong can make.]

[BTW: Good back-channel discussion on Twitter right now about AOL's SEO skills, and the people behind it. None of that coming up during this call right now.]

[Sorry, I meant HuffPo's SEO skills, much of which stem from blueprint BuzzFeed CEO Jonah Peretti set out.]

Q: Why not use equity for this deal?

A: Because our equity is priced too low, essentially. But HuffPo employees did roll over 25 percent of deal consideration into AOL options. So as that equity gets more valuable, they’ll get upside.

8:45 am: Q: In your statement, you talked about OIBDA growth in 2013. More on that please.

Minson–probably going to stick to my prepared remarks on that one.

8:46 am: Last Q: Your acqusitions have been about toolsets or content. As you think about others going forward, what else do you want?

Armstrong: We have long-term vision. On plumbing: We’ve wanted to get platforms and plumbing straightened out, and we’re doing that now. Think about the bones or foundation of a very large property. That’s why we’ve been doing infrastructure, like with video–5Min and GoViral and StudioNow.

Going forward, we’ll be doing infrastructure. And we’ll continue to look at “media properties and media brands” that fit our strategy. [Remember, Web site owners: HuffPo just got 10x revenue.

8:50 am: Minson: But we're very price sensitive and we've walked away from deals.

8:50 am: Arianna: And we like women!

8:51 am: Armstrong sums up: Success "in the Internet space" requires vision and execution. That's this deal. And remember, content and brands become more valuable as tech gets faster, more advanced. And "expect us to stay on strategy and on point" going forward. "We're going to overcommunicate" with both sets of employees as we integrate. [You've been warned!]

And we’re done. Thanks for reading.

[Photo credit: Arianna Huffington]

Steve Case is right to point out that AOL CEO Tim Armstrong’s “one plus one equals eleven” logic didn’t pan out during the first boom, when Case was running AOL and engineered the disastrous Time Warner deal.

But here, at least, both companies are trying to do the same thing: Make a lot of Web stuff at a low price, and sell ads against it.

So maybe AOL + HuffPo won’t equal 11. And maybe 10x Huffington Post’s reported 2010 revenue is a very pre-Lehman multiple. But the broad strokes here make sense to me:

AOL is pushing its workers very hard to make more content it can sell. HuffPo is a content-making machine:

Huffington Post still has the reputation as a left-leaning political site written by Arianna Huffington’s celebrity pals. In reality, it is most concerned with attracting eyeballs anyway it can. Sometimes it’s with well-regarded investigative journalism, and much more often it’s via very aggressive, very clever aggregation. And sometimes it’s by simply paying very, very close attention to what Google wants, which leads to stories like “What Time Does The Super Bowl Start?“

However they’ve done it, it’s worked–much more efficiently than AOL, which is headed in that direction as well. AOL reaches about 112 million people in the U.S. every month with a staff of 5,000. The Huffington Post, which employed about 200 people prior to the deal, gets to about 26 million.*

AOL can start selling this stuff immediately:

HuffPo reportedly generated around $30 million in revenue last year, but that was done using a relatively small staff that sales chief Greg Coleman had just started building. AOL’s much bigger sales group, which has just about finished its lengthy reorg, should be able to boost that performance immediately.

AOL can afford it:

Tim Armstrong’s company ended 2010 with $725 million in cash, much of which it generated by selling off old assets. This seems like a relatively easy check to write and one that shouldn’t involve a lot of overlapping staff–AOL figures it will save $20 million annually in cost overlaps, but that it will spend about $20 million this year on restructuring charges. HuffPo is about four percent of AOL’s size, and several of its top executives are already stepping aside. (This is the second time in two years that sales boss Greg Coleman has been moved out of a job by Tim Armstrong.) The biggest risk here will be in the way that Huffington, who is now editor in chief for all of AOL’s edit staff, gets along with her new employees. On the other hand, morale is low enough at many AOL sites that it will be hard to make things worse.

AOL Gets a Really Big Brand:

There’s some downside risk to attaching Arianna Huffington’s name to a big, mainstream media brand, as her politics and/or persona might scare off some readers and/or advertisers. But two years after Armstrong arrived from Google, AOL still doesn’t have a definable identity, other than “the Web site your parents might still pay for even though there’s no reason to do so.” Being known as “the guys who own Huffington Post” is infinitely better than that.

HuffPo’s “pro” list is much shorter, but only because there’s not much to think about for them: Huffington, co-founder Kenneth Lerer and their backers get a nice return on the five years and $37 million they put into the company. And those who stay on get to leverage the benefits of a much larger acquirer–access to more eyballs and more advertisers. Easy enough to understand.

Spinal-tap-ampli
Uploaded by TZA. – Click for more funny videos.

*(Something about these numbers, culled from AOL’s and Huffington Post’s own releases, doesn’t add up, as AOL now says the combined company will have 117 million uniques. But it’s close enough for now.)

In a bold and definitive move, AOL is paying $315 million, mostly in cash, to buy the Huffington Post, one of the Web’s most prominent news and opinion sites.

As part of the deal, Huffington Post co-founder Arianna Huffington (pictured here)–who was derided by some when she co-founded the left-leaning site in 2005 with investor and well-known communications exec Kenneth Lerer–will become president and editor in chief of the Huffington Post Media Group within AOL.

The deal was signed late this afternoon, and the board of directors of each company and shareholders of the privately held Huffington Post have approved the transaction.

In an exclusive video interview BoomTown conducted earlier today in Dallas, just before Super Bowl XLV, both Armstrong and Huffington were jovial that the whirlwind deal, begun in November, actually worked out so quickly.

Perhaps giddy, they hit upon a common motto:

“One plus one equals 11.”

Get it? One and one next to each other is the number 11!

Let’s move on, shall we?

AOL said it is expected to close in the late-first or early-second quarter of 2011.

Once culminated, it will put Huffington in charge of all AOL content and other properties, including well-known names such as Engadget, Moviefone, MapQuest and TechCrunch.

She said she plans to move to New York from Los Angeles, although she will also maintain her longtime Brentwood home there.

And content for all these sites will be integrated deeply into the Huffington Post, giving it a huge new infusion of editorial material.

More to the point, the flashy acquisition–which essentially came together in less than two weeks in January–will become the linchpin of AOL CEO Tim Armstrong’s aggressive, if risky, strategy to focus the long-troubled company as a content and advertising powerhouse.

For AOL, the deal gives it a popular branded site that is very good at generating lots of page views and impressions very efficiently–which is the company’s whole thrust these days.

That means lots more ad inventory to sell and an injection of content talent, giving AOL the scale it desperately needs.

The move also obviously gives AOL a much-needed editorial identity and cohesion, which it doesn’t really have.

In fact, many think AOL needs a rallying point to bring clarity to its hodgepodge of recent acquisitions that all center on the notion that a strong company has yet to emerge in the premium content space.

Here is a mock-up of the front page of AOL tonight (click on it to make it larger):

While it all makes for a riveting narrative by the charming Armstrong, AOL still has not delivered the business turnaround promised after its spinoff from Time Warner in 2009.

Wall Street, which has given Armstrong a lot of rope, has become more impatient of late to see results–especially more robust increases in its display advertising business, as its access business dies off–after AOL spun off from Time Warner in 2009.

In its quarterly report last week, AOL reported earnings of 61 cents a share on revenue of $596 million.

But, as MediaMemo’s Peter Kafka wrote:

The bigger picture is that Armstrong’s turnaround is still in progress. Ad revenue was down 29 percent in the last quarter, although that number is worse than it looks. A big chunk of the decline comes from moves AOL has intentionally made that will cut revenue in the short run in return for more profitable sales down the road.

A more representative data set for Armstrong are his display ad sales, which are down 14 percent overall and eight percent in the U.S..

The bad news is that the rest of the Web ad industry is well into rebound mode; the good news is that AOL has trained Wall Street to expect numbers like these. If you’re waiting to see positive sales numbers, Armstrong said during AOL’s earnings call this morning, wait until the second half of this year.

In any case, the move is a good one for the Huffington Post since it will vault it to the next level of growth.

Other companies, such as Yahoo and NBC Universal, had looked at the company as a purchase target, and many expected it to eventually sell out to a larger company.

Sources close to the Huffington Post said that that outcome seemed the most likely, and the recent expansion of the site and its audience made it a good time to do a deal now.

Talks with Yahoo last year went nowhere, sources said, but Armstrong was not as slow to act.

Indeed, the actual deal happened quickly, said Armstrong and Huffington in a video interview with BoomTown earlier today (which you can see here).

The pair started talking in early November of last year at the Quadrangle Conference in New York and continued their discussions through the holidays.

Armstrong made the official offer to Huffington by phone in January, while she was at the World Economic Forum in Davos, Switzerland, and he was snowed in in New York.

Five time multiple to the Huffington Post’s upward of $60 million in expected revenue for the coming year, and nearly 10 times the $31 million for 2010, the offer was accepted quickly.

AOL used cash for $300 million of the purchase and $15 million in stock for the rest.

“The idea of turning a fire hose of traffic onto our content made enormous sense,” said one person close to the situation. “Everything is changing so fast, it seemed like the time was right.”

An IPO was also considered for the Huffington Post, sources said. But since the site only recently moved into profitability–although barely–such an event would have been farther out.

That’s despite the fact that the Huffington Post has seen fast-growing traffic and influence, spurred in part by Huffington’s larger-than-life persona in both the mainstream media and blogosphere.

The wide-ranging site–which has added a number of content areas in recent years beyond its flagship political offering–currently has almost 26 million unique monthly visitors, according to recent stats, moving in close range to established news organizations such as the New York Times.

That kind of success seemed unlikely when the Huffington Post launched on May 9, 2005, positioning itself as as a liberal counterweight to the popular right-leaning Drudge Report.

But the Huffington Post’s heady mix of celebrity bloggers, personality and voice, as well as aggressive curation of links from other sites, quickly caught on.

To fund its efforts, the New York-based online media company has raised $37 million from angel investors such as Lerer–the largest individual shareholder, followed closely by Huffington–and venture firms such as Greycroft Partners, Softbank Capital and Oak Investment Partners.

The growth has not been without controversy around issues such as lack of payments to bloggers who contribute and accusations that the site uses too much content from other Web sources when linking.

And Huffington herself has also been a lightning rod, which has been both positive and negative for the site.

But, there is no question she is one of the Web’s most prominent players, along with writing books, appearing on television frequently and being a fixture at high-profile events in New York, Los Angeles and Washington, D.C.

That includes a never-ending panoply of parties that feature a potent mix of movie stars, corporate poo-bahs, glad-handing politicians and lots of journalists from all over the media.

In fact, full disclosure, I was at one of those parties this past weekend for actor Colin Firth and others involved in the making of the Oscar-nominated film “The King’s Speech.” (Apropos of nothing, actor Helena Bonham Carter is as smart as you would expect, but much more delicate.)

As part of the AOL deal, CEO Eric Hippeau–who has been integral to professionalizing the business and will be joining Lerer Ventures–and Chief Revenue Officer Greg Coleman will leave the Huffington Post.

Ironically, Coleman was replaced by Armstrong as head of ad sales at AOL after he took over as CEO. Coleman got a big payout and will now apparently get another.

But the rest of the 200 Huffington Post employees are moving over to AOL with Huffington, who Armstrong hopes will be the company’s ace in the content hole going forward.

There are likely to be changes to come too at AOL, within weeks, especially in its content-side management and site staffs.

AOL provided some quotes in support of the deal from prominent Internet figures who know Huffington well.

“Arianna is one of the preeminent authors and editors of our time, and Tim has a remarkable track record of business success,” said Facebook COO Sheryl Sandberg. “Bringing them together creates tremendous potential for AOL.”

And Twitter co-founder Biz Stone said:

“Editorial vision and leadership are essential in order to transmute our shared cacophony of voices into a valuable dialogue. Arianna’s expertise, empathy, and entrepreneurial enthusiasm forms a kind of alchemy turning mere words and phrases into powerful expressions of humanity.”

Inter-Internet harmony: How sweet!

Here is the official press release, with all the details, but there is also an 8 am ET AOL conference call tomorrow:

AOL AGREES TO ACQUIRE THE HUFFINGTON POST

Acquisition Will Solidify AOL’s Strategy of Creating a Premier Content Network With Local, National and International Reach

Arianna Huffington To Lead Newly Formed The Huffington Post Media Group Which Will Integrate All Huffington Post and AOL Content, Including News, Tech, Women, Local, Multicultural, Entertainment, Video, Community, and More

The New Combined Media Group Will Reach 117 Million Americans and 270 Million Globally

Group Uniquely Positioned To Redefine the Future of Brand Advertising and Marketing For an Engaged and Influential Audience

New York, NY–February 7, 2011–AOL Inc. [NYSE:AOL] announced today that it has entered into a definitive agreement to acquire The Huffington Post, the influential and rapidly growing news, analysis, and lifestyle website founded in 2005, which now counts nearly 25 million unique monthly visitors*.

The transaction will create a premier global, national, local, and hyper-local content group for the digital age–leveraged across online, mobile, tablet, and video platforms. The combination of AOL’s infrastructure and scale with The Huffington Post’s pioneering approach to news and innovative community building among a broad and sophisticated audience will mark a seminal moment in the evolution of digital journalism and online engagement.

The new group will have a combined base of 117 million unique visitors a month in the United States and 270 million around the world**. Following the close of this transaction, AOL will accelerate its strategy to deliver a scaled and differentiated array of premium news, analysis, and entertainment produced by thousands of writers, editors, reporters, and videographers around the globe.

As part of the transaction, Arianna Huffington, The Huffington Post’s co-founder and editor-in-chief, will be named president and editor-in-chief of The Huffington Post Media Group, which will include all Huffington Post and AOL content, including Engadget, TechCrunch, Moviefone, MapQuest, Black Voices, PopEater, AOL Music, AOL Latino, AutoBlog, Patch, StyleList, and more.

“The acquisition of The Huffington Post will create a next-generation American media company with global reach that combines content, community, and social experiences for consumers,” said Tim Armstrong, Chairman and CEO of AOL. “Together, our companies will embrace the digital future and become a digital destination that delivers unmatched experiences for both consumers and advertisers.”

Armstrong continued, “Arianna is a singularly passionate and dedicated champion of innovative journalistic engagement, and a master of the art of using new media to illuminate, entertain and enhance the national conversation. Arianna is a remarkable person and she will continue to create remarkable outcomes for the combined company.”

“This is truly a merger of visions and a perfect fit for us,” said Huffington. “The Huffington Post will continue on the same path we have been on for the last six years–though now at light speed–by combining with AOL. Our readers will still be able to come to the Huffington Post at the same URL, and find all the same content they’ve grown to love, plus a lot more–more local, more tech, more entertainment, more finance, and lots more video. We are fusing a legendary and powerful new media brand with a vibrant, innovative news organization, known for its distinctive voice, a highly engaged audience, an expertise in community-building, and a track record for demystifying the news and putting flesh and blood on the data while drawing our audience into the conversation.”

Huffington continued, “By uniting AOL and The Huffington Post, we are creating one of the largest destinations for smart content and community on the Internet. And we intend to keep making it better and better.”

Kenneth Lerer, The Huffington Post’s Co-Founder and Chairman, said, “The Huffington Post team has created a potent brand with the proven track record of knowing how to grow traffic, inform and entertain its readers and build a one-of-a-kind online community. Add that to the powerful scale and resources of AOL and you have the perfect combination for today and the future. Together these two companies will be a premier online content provider. From local citizen reporting through AOL’s Patch, to The Huffington Post’s national reporting on politics, business and culture, consumers will have access to everything they want whenever they want it.”

AOL has agreed to purchase The Huffington Post for $315 million, approximately $300 million of which will be paid in cash funded from cash on hand. The Huffington Post is privately owned by its two cofounders, as well as a group of investors. The proposed transaction is subject to customary closing conditions, including receipt of government approvals. The boards of directors of each company and shareholders of The Huffington Post have approved the transaction. The transaction is expected to close in the late first- or early second-quarter 2011.

The Huffington Post over-indexes on educated, affluent users, reaching the key decision makers in C-suites around the globe. The Huffington Post speaks to this influential audience via a host of prominent voices on its group blog. Among those who have blogged on The Huffington Post are: President Barack Obama, Secretary of State Hillary Clinton, Mayor Michael Bloomberg, Larry Page, Diane Sawyer, Buzz Aldrin, Nora Ephron, Bill Maher, Madeleine Albright, Robert Redford, Katie Couric, Neil Young, Rahm Emanuel, Mia Farrow, Senator Russ Feingold, Senator Al Franken, Ari Emanuel, Harry Shearer, Senator John Kerry, Representative Nancy Pelosi, Madonna, Lawrence Summers, Jamie Lee Curtis, Ryan Reynolds, Craig Newmark, Alec Baldwin, Aaron Sorkin, Natalie Portman, Scarlett Johansson, Russell Simmons, Sean Penn, Bill Gates, Norman Lear, Charlie Rose, Elizabeth Warren, Tavis Smiley, Sheryl Sandberg, George Clooney, and former President Bill Clinton. And the audience speaks back, generating four million comments a month***.

The Huffington Post’s affluent, influential audience, that is growing at a rate of 22 percent (December 2009 vs. December 2010)****, when combined with AOL’s massive scale, video offerings and local expertise, will represent an incredibly desirable demographic for a broad range of advertising partners across the board.

And here is Armstrong’s internal memo to the AOL staff:

AOLers,

We are taking another major step in the comeback of AOL. Today we are announcing that we have agreed to acquire The Huffington Post, one of the most exciting, influential, and fastest growing properties on the Internet. We believe in brands, quality journalism, and the positive role of communities in the world–The Huffington Post shares our values and the combination of the two companies will create the premier global and local media company on the Internet.

Co-founded six years ago by Arianna Huffington and Ken Lerer, The Huffington Post has grown to become an industry leader–one of the Web’s most popular and innovative sources of online news, commentary, and information. Arianna and team have created a brand and a destination that focuses on the consumer experience. By combining The Huffington Post with AOL’s network of sites, thriving video offerings, local expertise and enormous reach, we will create a company that is laser-focused on serving our audiences across every platform imaginable–social, local, video, mobile and tablet.

The Huffington Post is core to our strategy and our 80:80:80 focus–80% of domestic spending is done by women, 80% of commerce happens locally and 80% of considered purchases are driven by influencers. The influencer part of the strategy is important and will be potent.

The Huffington Post is a strong influencer brand and it attracts a valuable audience, including a great focus on women’s content. In addition, Arianna Huffington is a world-renowned expert on women’s topics and issues, and has enabled The Huffington Post to grow rapidly by continually developing new audiences.

In the local area, the combination of the two companies will create a scaled connection between global and local communities on one platform. This will create a new way for people to get local and global information in a timely and entertaining way.

The Huffington Post will join the family of AOL Brands that are destinations for an influencer audience, brands like TechCrunch, Engadget, AutoBlog, and Moviefone. Uniquely, The Huffington Post is the platform for influential people–the people that drive trends, commerce, politics, entertainment, news, and information. Adding this strategic platform to our already strong network of sites, including the AOL homepage, has the potential to make AOL the most influential company in the content space.

Arianna Huffington is one of the most successful entrepreneurs in the Internet space and someone that is even more successful in building communities and relationships in every corner of the globe. The Huffington Post and Arianna have created a company that has partnered with the most successful and well-known leaders in all aspects of society that touch important topics to give consumers direct access to the most influential decision makers and community leaders.

This acquisition will create a high-quality and diverse digital ecosystem encompassing local, national and international news, politics, entertainment, technology, fashion, sports, health, personal finance, green, lifestyle, the arts and more. This deal will combine the amazing talent at AOL with the innovative and talented staff of The Huffington Post. Here are just a few high-level points around what this deal brings to market:

* Together, AOL and The Huffington Post will have 117MM unduplicated domestic monthly UVs, and ~270MM monthly UVs worldwide (according to comScore Dec 2010).

* The Huffington Post is one of the fastest growing web properties on the Internet. It grew 22% last year–that’s faster than Twitter, which grew 18% – and 15x as quickly as the Internet grew last year (comScore Dec ’09-’10).

* Both AOL and The Huffington Post count powerful, affluent users among their top loyal visitors, significantly over-indexing in $100K+ income users.

* AOL passed Hulu in unique viewers on video in the fourth quarter of 2010; video views on AOL are up 400 percent year-over-year.

* Between AOL’s innovative Project Devil ad unit, engaging users for 27 seconds longer than traditional display ads, and The Huffington Post’s highly-vocal community, with 4MM+ comments per month, we will marry attention-grabbing content and brand experiences for both advertisers and consumers.

In the local area, the combination of the two companies will create a premier global/local syndication network at scale. This will create a new way for people to get local and global information in a timely, informative and entertaining way.

To maximize the strategic advantage of this great deal, we will be creating a new group at AOL called The Huffington Post Media Group. Within this group will be AOL Media, AOL Local & Mapping, AOL Search and our new friends at The Huffington Post. We will continue operating the towns structure, AOL.com and HuffingtonPost.com.

I’m thrilled to announce that Arianna Huffington will join AOL’s executive team as President and Editor in Chief of The Huffington Post Media Group. We have asked Jon Brod to lead the overall operational integration on the AOL side of the combined entities. Jon will lead the local group integration and work closely with David Eun and the teams in AOL Media. We will work quickly with The Huffington Post to create a combined organizational design to coincide with the deal closing. While we wait for the required regulatory reviews to be completed and the transaction to close before implementing the design, we will move very quickly to plan the details of the integration of the two companies. To this end, we will announce the new organizational structure as soon as possible.

In the meantime, we will continue creating great content and products for our consumers within the town structure and stay laser-focused on the aggressive goals we have set for our winter luge. We are on the right track and will continue our weekly operating cadence and town structure to drive successful results against our company goals.

Here’s a special message for all of you we taped to welcome The Huffington Post and Arianna to our AOL Family:

http://today.office.aol.com/company-news/2011/02/aol-agrees-buy-huffington-post

And of course we wanted to welcome Arianna to our “You’ve Got” video of the day–check her out on AOL.com.

We will be holding a company all hands meeting to address your questions related to today’s exciting news. We will video conference from our New York office on the 6th Floor at 9:30 AM ET and will be joined by Arianna Huffington and key executives from her organization. We will also be holding a call for our west coast offices at 2:00 PM ET and for our Patch offices at 2:45 PM ET. See below for meeting info (conference rooms will be sent out shortly).

AOL is playing to win…and The Huffington Post and AOL will occupy a unique place in the future of the Internet. Let’s go get it done.

–TA

(More full disclosure: As has been previously reported by MediaMemo, All Things Digital had the briefest and most preliminary of discussions with Armstrong about moving to AOL last year, while exploring several other options. All’s well that ended well: We stayed at Dow Jones, which is owned by News Corp.)

Eric Hippeau (pictured here), longtime Yahoo board member and one of its earliest investors, will be stepping down as a director, according to sources close to the situation.

In a related move, sources said Akamai President David Kenny will be joining the board of the Internet giant.

The changes become official at Yahoo’s regular board meeting on Tuesday, although Hippeau will not step down until the summer.

Rather than quit immediately, as previous board members have, he will not stand for election at its annual shareholder meeting in June.

The departure of Hippeau and the arrival of Kenny comes at a critical time for Yahoo, which has been under great pressure from investors to revive its growth and re-ignite innovation in the face of more nimble competitors.

Under CEO Carol Bartz, the company is still in the midst of a turnaround, and Wall Street has been losing patience with her and also its somewhat ineffectual board.

Hippeau has been on that board since 1996, which is approximately 132 years in Internet time.

The longtime Web investor and publisher–at Softbank and Ziff-Davis–has a lot of online experience.

Sources said Hippeau felt he had been on the board long enough and it was time to go. It has certainly been a wild ride, from insane Web 1.0 hypergrowth to a bruising takeover fight with Microsoft.

The addition of Kenny to the board is a welcome one. As BoomTown has previously reported, Yahoo had tried to bring him on before and he declined.

With both tech and advertising experience, Kenny is also a natural possibility for a board leader, as well as a potential top exec if Yahoo keeps going sideways.

According to his bio at Akamai, which he joined last fall, he is “responsible for leading Akamai’s business operations, including the company’s product groups; global sales, services, and marketing; engineering; and networks and operations.”

Before Akamai, he ran VivaKi and was a member of the management board of its parent, Publicis Groupe, the huge ad and marketing company.

Kenny ran Publicis’s overall digital and interactive strategy. He came to Publicis after it bought Digitas, where he was chairman and CEO.

Before that, the Harvard Business School graduate worked at consulting firm Bain & Company and also in marketing and strategy at General Motors.

A Yahoo spokeswoman declined to comment and Hippeau did not respond to an email query. And an email to my new bestest friend Kenny also got no response.

With all the noisy swirl around Yahoo of late–from its executive turmoil to its flat growth to its dashed partnerships in Asia to its brash CEO–its board has been unusually quiet of late.

Comatose, some might say.

In fact, many do say exactly that, pointing to the trauma of their disastrous performance when they fended off a hostile takeover attempt by Microsoft (MSFT) for above $30 a share as the cause.

Since then, the stock price of Yahoo (YHOO) has been mired in the low teens.

That is, until yesterday, when even more rumors of new plots emerged in the media, with private equity firms, media companies, Web rivals, big shareholders, Wall Street and others all machinating about trying to grab all or some of the Internet giant.

Now, it will be interesting to see if its directors will shake themselves out of their typical comfort zone of inactivity to actually do their job.

Which, as former GE (GE) star exec Jack Welch–in a recent smackdown of a spate of controversial moves by the Hewlett-Packard (HPQ) board–said in a recent interview, is to “pick the CEO, help them shape strategy, make them feel good about themselves, and, if the CEO isn’t doing a good job, to ‘get them the hell out of there.’”

According to sources close to the situation, the Yahoo directors are in a quandary, even as they are on the receiving end of a flood of suggestions and demands from big investors, ranging from merging with AOL (AOL) to aligning with News Corp. (NWS) to selling off the company’s lucrative Asian assets to replacing CEO Carol Bartz.

You get the idea.

But that might not happen as quickly as some want. Sources said that while the eight-person board has some strong personalities on it, there is no one who has emerged as a powerful leader, aside from Bartz.

Yahoo has recently tried to attract two execs who might be able to go toe-to-toe with her–OpenTable (OPEN) CEO Jeff Jordan and Akamai (AKAM) President David Kenny–but was turned down by both.

Neither apparently wanted the headache of dealing with Yahoo’s struggles.

The same goes for some on Yahoo’s board.

Said one person who had spoken to a few board members recently: “Each of them tells me, ‘I’m only one person and I can’t act alone.’”

Indeed not, which is why you have a board. Stone soup, people!

In any case, it is high time to put the spotlight on the Yahoo directors, which I have done in the past in other crisis moments.

Here’s a rundown, with their photos from Yahoo’s shareholder Web site, along with some BoomTown analysis:

Carol Bartz, CEO:

We all know her, the tough-talking longtime Silicon Valley software exec who was brought in to clean up Dodge in the wake of the rocky tenure of former CEO and co-founder Jerry Yang. She is under pressure here for not doing that well enough, of course, despite a very, very big compensation package.

Still, with an aggressive personality and a wimpish board, she might be able to stave off any challenges to her power.

Roy Bostock, Chairman:

The longtime airline board member and advertising exec has been at the top of the Yahoo board since 2008 and on it since 2003.

Which is why I called for his resignation after Yang and former Yahoo President Sue Decker gracefully stepped down, after their management was called into question.

Bostock was right there with them, making all those decisions, which turned out to be disastrous in hindsight. Still, he does not seem to be much for the honorably-falling-on-your-sword thing.

In fact, sources said he has been making the rounds of investors recently trying to gauge the mood. Memo to Roy: It’s bad.

Eric Hippeau

Now the CEO of the Huffington Post, the longtime Web investor and publisher has a lot of online experience and should be one of the leaders on the Yahoo board. Hippeau has certainly been a director long enough to be one–since 1996, as an early investor in the company.

He’s also known as a super-nice guy in Internet circles, which means he is no head-smacker. Too bad.

One idea floated to me by an investor: Yahoo could buy the upstart online media darling and install him as CEO. Pretty please, because the entrance of the fab stylings of Arianna Huffington into this mess would send me into the stratosphere of reporting nirvana.

Vyomesh Joshi

Also a very endearing dude, the top HP exec was one of those on the short list for CEO of the tech giant recently. He runs its gigantically profitable printing and imaging business.

He’s been a Yahoo director since 2005 and should be a key decision maker, since he is an experienced operator. He’s not been, unfortunately.

Arthur Kern

Also a lifer, also having been on the Yahoo board since 1996, the investor and radio exec has also worked in marketing at Digitas.

Among the board members, he seems to be the quietest of the bunch, so I am not sure what to say about him except that he has very white teeth.

Gary Wilson

Another investor–in private equity, he has been on the board of airline companies (what is with this plane stuff on the Yahoo board?), as well as a top financial exec at Disney (DIS) and Marriott (MAR).

Again, a nice résumé, and he should be a leader. He was definitely more involved in the Microsoft situation than others.

Since then? Meh.

Sue James

The accountant. Retired from Ernst & Young. Used to work for Bartz, as lead partner for audit work for Autodesk (ADSK). Joined the Yahoo board early this year.

Probably just figuring out that this whole thing might not be adding up.

Patti Hart

Also new, since June. Worked in the digital video business, and is now the CEO of a “global provider of electronic game equipment and systems products.”

Say what?

Okay, I will go with it, as I am liking that Bartz has brought on two women to the board, which has mostly been stacked full with men.

Brad Smith

The president and CEO of Intuit (INTU), the financial management software powerhouse, also joined in June. This guy should be able to shake the trees, right?

But he is probably still trying to learn everyone’s name. Brad, not to put too much pressure, but everyone is counting on you.

Jerry Yang

Last, but certainly not least, the man who is ultimately the power player here.

The Internet pioneer and industry legend checked out of Yahoo for a bit after he stepped down in early 2009–time to tee off!

But many sources said he has been back at Yahoo for a while–glad-handing advertisers, meeting with entrepreneurs, sussing out trends, piping up in strategy meetings and doing the behind-the-scenes thing that he does so well.

Reports vary on how much he likes Bartz–he expresses support for her to some, but seems to have soured on her to others.

Who knows with the endearingly prickly Yang, whom I have been covering for a dog’s age and who should return my emails once in a while, like in old times when I stalked him.

Dinner is optional, but I will pay this time (see video below of our last semi-enjoyable meal).

Still, here is what I know for sure: Yahoo is Yang’s creation and legacy, and he’s the one who has to make sure that it survives and thrives.

For all the uncertainty surrounding Yahoo once again, that much is true.

]]> http://allthingsd.com/20101014/meet-the-yahoo-board-something-old-something-new-but-will-they-do-something/feed/ 4 http://allthingsd.com/20100930/here-comes-the-yahoo-spin-cycle-so-try-boomtowns-soap-free-guide-to-whats-actually-happening/ http://allthingsd.com/20100930/here-comes-the-yahoo-spin-cycle-so-try-boomtowns-soap-free-guide-to-whats-actually-happening/#comments Thu, 30 Sep 2010 07:53:01 +0000 Kara Swisher http://kara.allthingsd.com/?p=34475

Here’s how Yahoo’s top brass and board–with the help of its newly re-engaged crisis-management PR firm, Abernathy MacGregor–are already trying to spin the latest executive turmoil to hit the company:

Trashing those on the way out, to take focus off those remaining who have been just as responsible for driving the Internet icon and claiming that this is all part of yet another well-planned reorganization at Yahoo (YHOO).

Don’t believe most of it for a second. Some of it is corporate politics as usual, some of it rejiggering of events, some just not true at all.

After BoomTown’s scoop earlier today that Yahoo’s U.S. head Hilary Schneider, as well as Audience head David Ko and VP of Media Jimmy Pitaro, would be departing the company–all of which Yahoo is still planning to announce after the markets close on Friday–here comes this gem in a follow-up story in The Wall Street Journal:

“[Yahoo CEO Carol] Bartz, who joined Yahoo in January 2009, is in the midst of a turnaround effort. People familiar with the matter said she is removing the company’s old guard to assemble a new team.”

Let’s parse this ridonkulous spin-addled blame game, shall we?

Bartz is, in fact, the very person who picked all those execs for prime responsibility in her last reorg.

If they were so incompetent, why not dump them much quicker? After all, it’s not like the problems have not been mounting for months and months, with more and more talent taking off.

In addition, the exec exodus at Yahoo over the last year has been unrelenting and broad, encompassing way too many employees for her to act as if it were all planned and okay.

As to the “midst of a turnaround effort” canard that Bartz keeps insisting on, even comparing herself to Apple (AAPL) CEO Steve Job’s epic journey to return that legendary company to health?

Um, we are deep in the second year of the Bartz regime, and there appears to be no iPod-like save in sight, and it’s a little long in the tooth to keep using the turnaround excuse for all that has not yet happened under her command.

Which is to say, stock with a pulse and real growth across all metrics, as Facebook and Google (GOOG), to name a few, are showing.

In addition, it was Bartz herself who handed over a lot of the responsibility for the revival of Yahoo to Schneider.

Which meant Schneider had to be thrown under the wheels of the bus in the Journal by dragging out a very old–and tangential to the much larger flat revenue crisis at Yahoo–newspaper deal as pretty wet cannon fodder:

“Ms. Schneider is leaving because officials haven’t been satisfied with her performance, according to people familiar with the matter. Ms. Schneider was responsible for a 2006 deal with industry group Newspaper Consortium, in which Yahoo sold ads for newspaper websites and print editions. The effort continues but has not met Yahoo’s expectations, according to a person close to the company.”

Memo to readers: “People familiar with the matter,” I am guessing, would be current Yahoo execs.

The fact of the matter is that there have been both critics and admirers of Schneider at Yahoo, which comes as no surprise for one of its top execs. Some consider her smart and canny, while others complain of indecisiveness and slowness to act.

And, she has definitely had some very big whiffs, including the newspaper consortium, but most especially not finding an ad sales chief to replace Joanne Bradford, who left in March, about which I gave her a hard time when a very squishy structure was announced.

And, right now, sources tell me, Yahoo’s upcoming quarterly report could be an even tougher one.

And that falls to Schneider, of course, who has been in charge of its many partnerships, as well as advertising sales across the key Americas region.

Perhaps good reason for an ouster, except I have been tracking Schneider’s status for many months now, since hearing from many sources–not her, ever, in case you wanted to know–that she had told Bartz she wanted out.

Maybe that is what began to sour the boss on Schneider. But to now suddenly call her performance poor seems unusual, especially when you can just as easily point to Yahoo’s disastrous and pricey marketing campaigns–it is definitely not You!–helmed by CMO Elisa Steele, which has failed to move the needle on key user metrics.

But she has a tight relationship with Bartz, so she’s all right, jack? I am dizzy from all the spinning.

In other words, execs make mistakes and there is a lot of blame to go around and–as the old saying goes–the buck really does stop with Bartz.

But, guess what? Perhaps it should be noted that Bartz has also misstepped badly of late by making a series of wild remarks that have seriously angered many partners and other companies in Silicon Valley.

And I have heard from countless and very significant investors, all of whom are deeply concerned about her tone and recent public comments.

Just ask Yahoo Japan’s Masayoshi Son. Or Alibaba’s Jack Ma in China. Or the fine folks over at Apple in Cupertino, Calif.

And, I can also report that several execs at Yahoo’s new search technology partner, Microsoft, are also increasingly alarmed. Said one to me yesterday: “It is becoming a little unsettling.”

I can say for certain that Ko, who will doubtlessly be the next to get dinged, left on his own motor, telling Bartz himself recently.

He was quickly followed by Pitaro, who, as I reported earlier this week, is headed to another big company. No matter what the spin, his departure is a big loss, as he is well-liked inside and outside the company.

Then Schneider rounded out the latest trio of execs to go.

Thus, sources said, Yahoo is about to go on the offense, which is the expected thing to do, ready to announce a plan to move most of the product organization under Chief Product Officer Blake Irving.

The former Microsoft (MSFT) online exec is as sharp as a tack, in my experience, and clearly an even sharper corporate player, recently bringing in a series of his old cohorts from the software giant to take over big jobs at Yahoo.

He’s obviously now won some version of a corporate power play, and is now in favor with Bartz. But that means he’s being handed the entire thing.

Apparently, Irving has told numerous people that he plans to “rip it all down” and streamline the whole organization.

More rearranging at the company that has moved around the corporate living room umpteenth times over the past several years? Except it is still essentially the same room and same house.

Okay, Irving should probably have his choice of where the sofa goes, but as one exec wisely told me tonight: “Yahoo needs to build great products, not have another reorg….It needs a win.”

Indeed, just as board member Eric Hippeau apparently said at a recent meeting to deal with the latest executive kerfuffle.

Yahoo Chairman Roy Bostock–who has presided over so many stumbles over the years that I have lost count–said to the room: “We need crisis management.”

Countered Hippeau, a longtime Internet exec who is now CEO of the Huffington Post: “What we need is revenue.”

Indeed. And innovation. And a vision. And, most of all, spin-free leadership.

]]> http://allthingsd.com/20100930/here-comes-the-yahoo-spin-cycle-so-try-boomtowns-soap-free-guide-to-whats-actually-happening/feed/ 12 http://allthingsd.com/20100412/the-huffington-post-goes-to-harvard-business-school-as-a-case-study-that-is/ http://allthingsd.com/20100412/the-huffington-post-goes-to-harvard-business-school-as-a-case-study-that-is/#comments Mon, 12 Apr 2010 18:17:12 +0000 Kara Swisher http://kara.allthingsd.com/?p=26421

While a lot of people doubted Arianna Huffington when she co-founded her eponymous blog site many years ago, she can add another I-told-you-so to the pile, after today’s induction of the Huffington Post as an official Harvard Business School case study.

Huffington, as well we HuffPo CEO Eric Hippeau have been at the school today, answering questions from the 900 students to whom the case study has been presented.

While it will not be immediately published, as others have been, due to the company wanting to keep some information private, Huffington said the overall theme was how some enterprises create opportunity when other see problems.

“The whole concept is about disruption in the media business,” said Huffington, who knows the topic well, given content blogs like hers are often blamed for disintermediating the media business.

Huffington actually got hooked up with Harvard professor Tom Eisenmann via his wife, well-known tech and media investment banker Jill Greenthal, at the seventh D: All Things Digital conference last June, where Huffington appeared onstage in an interview with me.

Eisenmann, who co-heads a course at HBS called “The Entrepreneurial Manager,” said he had long wanted to profile the innovative start-up.

“They’re ambitious,” he noted, in terms of revenue and editorial goals. “And, for the students, it’s fun to have a case that is more familiar and current.”

Eisenmann’s team started collecting data–about one-third history, one-third on the current business and one-third about competitors–from the HuffPo execs and staff in November.

While there have been many case studies of digital companies, Eisenmann said the point of this study is to allow students to look at key decision-making moments that a fast-growing start-up has to face.

“There is always a series of key decisions,” he said. “Our goal is to ask the students to find out if they were the right ones or not.”

Indeed, and while Huffington and her team keep making them, here’s a the video of her at D7 in an interview with Washington Post (WPO) publisher Katharine Weymouth:

]]> http://allthingsd.com/20100412/the-huffington-post-goes-to-harvard-business-school-as-a-case-study-that-is/feed/ 0 http://allthingsd.com/20100202/a-father-and-son-team-that-founds-web-startups-wants-to-finance-them-too-ken-and-ben-lerer-get-their-own-fund/ http://allthingsd.com/20100202/a-father-and-son-team-that-founds-web-startups-wants-to-finance-them-too-ken-and-ben-lerer-get-their-own-fund/#comments Tue, 02 Feb 2010 11:30:25 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=15751 Are you cobbling together a start-up in New York City and looking for cash? Good news: A lot of wealthy and wired people want to write you a check.

Meet the newest batch: Lerer Media Ventures, a new fund run by Huffington Post co-founder Ken Lerer and his son, Thrillist co-founder Ben Lerer.

The two men say they’re closing the fund’s first round in the next few days. When they’re done, they will have around $7 million to put into angel/early-stage investments–primarily in New York tech/media companies, though they intend to play on the West Coast too.

If you want a sense of what the Lerers are looking for, check out deals they’ve already done, like Hot Potato, Paperless Post, and GDGT.

Their investors include a number of bold-faced names, at least by tech/media standards. Among them: Pilot Group’s Bob Pittman, ZelnickMedia’s Strauss Zelnick, SoftBank Capital partner Mike Perlis, Hunch co-founder (and prolific blogger) Chris Dixon, uber-angel investor Ron Conway and Lerer’s Huffington Post co-founder, Arianna Huffington.

The Lerers join the ranks of other investors interested in New York start-ups, including early-stage venture capital shops Union Square Ventures, Spark Capital and First Round Capital, and a set of smaller funds like IA Capital Partners, Betaworks and Founder Collective.

The fact that the last two funds are directly connected to the Lerers–Ken is an investor in Betaworks (and shares office space with it), and Chris Dixon is an investor in Founder Collective–shows just how interlinked the New York start-up scene is. The same players seem to invest in the same deals, and now they’re investing in one another.

For instance: Check out the investor list for Brooklyn-based Hot Potato, which looks a lot like the Lerers’ group.

Or consider the fact that Pittman once worked with Ken Lerer at AOL (AOL) and now funds Ben Lerer’s newsletter company. Or the fact that Perlis, via SoftBank, is a Huffington Post investor and that former SoftBank partner and current Huffpo CEO Eric Hippeau will be an adviser to the new fund. Etc.

If you’re a cynic, you might call such familiarity overly cozy. And you might worry about the chances for a start-up that doesn’t find favor with the collective. If you’re an optimist, you’d say there’s nothing wrong with like-minded investors who like to collaborate.

No surprise what side Ken Lerer is on. And what about the growing number of people who want to invest in Web start-ups again? Not a problem, either.

“In angel investing, you don’t really have competitors. You go ahead and do your thing,” Lerer insists. “I don’t look at Internet or Internet investing as competitive, generally.”

Fair enough. If anyone feels otherwise, sound off in the comments below.

And in the spirit of full disclosure, I’ll note that even I have the faintest of links to this group, though it’s mainly aspirational. Ken Lerer was an early backer of my former employer, Silicon Alley Insider, and I have the tiniest of investments in that company, too.

[Image credit: Tony the Misfit]

]]> http://allthingsd.com/20100202/a-father-and-son-team-that-founds-web-startups-wants-to-finance-them-too-ken-and-ben-lerer-get-their-own-fund/feed/ 0 http://allthingsd.com/20100105/huffpo-needs-ad-dollars-can-yahoo-sales-vets-deliver/ http://allthingsd.com/20100105/huffpo-needs-ad-dollars-can-yahoo-sales-vets-deliver/#comments Tue, 05 Jan 2010 11:30:13 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=14713 The Huffington Post has a newish CEO, a big pile of investors’ money and a lot of readers. Time to turn it into a business.

That’s the idea behind a brace of new sales guys, brought in by sales head Greg Coleman, who is himself a newish addition to the site.

The hires:

• Andy Wiedlin, formerly at News Corp.’s (NWS) MySpace, and Yahoo before that, will run West Coast sales.
• Phil Cara, formerly at AOL, and Yahoo before that, will run East Coast sales.
• Peter Cherukuri, the former publisher of Roll Call, will run sales in Washington, D.C.
• Brian Kaminsky, formerly at Reuters, and Yahoo prior to that, will run sales operations out of New York.

Note the connection for three of the four new guys? Not a coincidence.

Coleman was the longtime Yahoo (YHOO) sales head until he got pushed out in 2007. He resurfaced last year as head of AOL’s (AOL) sales group but left less than three months into the job when new CEO Tim Armstrong brought in his guy.

At the new gig, Coleman’s plan is to use his new/old team to convince advertisers to start spending significant money. The site was on track to do something in the $10 million range last year, but CEO Eric Hippeau wants to goose that number to $100 million in the next few years in order to justify the $37 million that investors have sunk into the company.

Coleman came to the site last fall when it already had a good traffic story to tell–comScore (SCOR) counted 6.8 million unique users in September, which is more than WSJ.com’s 6.7 million. And that story will get better very soon, as comScore rolls out its new “hybrid” measuring system. Coleman says the new numbers will push Huffpo above the 17 million mark.

His team still needs to battle the perception that Huffpo is an all-politics (and lefty, to boot) site, since advertisers are often leery about anything political.

Sure enough, as I’m typing this Monday night, the site’s front page is dominated by Washington coverage–a banner headline about the Republican Party’s opposition to something called the Consumer Financial Protection Agency. And no matter what Coleman and his guys say, no one’s going to confuse the site with, say, Fox News.

Still, the site has long argued that it isn’t dominated by political coverage, and Coleman now says less than 25 percent of its traffic comes from that stuff. A heavy dose of entertainment/media coverage–did you know the dude from “300″ now has man boobs and a paunch?–helps make that claim plausible.

Will advertisers buy it? People who aren’t Greg Coleman tell me marketers were already warming to the site this year, a result of work done by the previous regime. And in large part due to interest from entertainment companies pushing new movies and TV shows.

But if Coleman and his employers want to hit their $100 million goal, they’ll need to do a lot more work. For more on Coleman’s strategy, check out his conversation with Kara Swisher from last fall.

]]> http://allthingsd.com/20100105/huffpo-needs-ad-dollars-can-yahoo-sales-vets-deliver/feed/ 0 http://allthingsd.com/20091021/live-blogging-the-whither-journalism-panel-with-google-huffpo-nyt-and-wsj/ http://allthingsd.com/20091021/live-blogging-the-whither-journalism-panel-with-google-huffpo-nyt-and-wsj/#comments Thu, 22 Oct 2009 01:07:25 +0000 Shira Ovide http://voices.allthingsd.com/?p=16888 It’s a face-off between new and traditional media at the Web 2.0 Summit.

Representing new media, in a discussion over the future of journalism, are Federated Media’s John Battelle; Marissa Mayer, who leads Google’s (GOOG) search services and consumer products like Chrome; and Huffington Post CEO Eric Hippeau. Arthur Sulzberger Jr., publisher of the New York Times (NYT), and The Wall Street Journal’s top editor, Robert Thomson, stand in for the old guard.

Aggregator sites like Huffington Post and online portals like Yahoo (YHOO) and Google have seen their readership, advertising revenue and influence increase. Meanwhile, traditional-media types have criticized these forces for unfairly leeching their reporting and hurting their business models. We’ll be alert for verbal sparring.

Read the rest of this post on the original site

]]> http://allthingsd.com/20091021/live-blogging-the-whither-journalism-panel-with-google-huffpo-nyt-and-wsj/feed/ 0 http://allthingsd.com/20091020/as-traffic-booms-is-huffpo-ready-to-make-some-real-dough/ http://allthingsd.com/20091020/as-traffic-booms-is-huffpo-ready-to-make-some-real-dough/#comments Tue, 20 Oct 2009 16:21:53 +0000 Kara Swisher http://kara.allthingsd.com/?p=19542

For the past few months, the Huffington Post has been on a bit of a tear–both in terms of traffic gains and in its hiring of some big talent for key positions.

Now, those execs are focusing on using that consumer momentum to achieve what has eluded the Huffington Post thus far: Making some serious bank from the privately held news and media site.

How to help marketers to better understand the site and, therefore, spur this significant monetization will be his main focus at the Huffington Post, said Greg Coleman to BoomTown in an interview over the weekend.

Coleman–a former Yahoo (YHOO) advertising exec, as well as one for Time Warner (TWX) online unit AOL–was named president and chief revenue officer a month ago by Huffington Post’s new CEO, Eric Hippeau.

Hippeau, who was himself just appointed in June, is another well-known online media exec and has been a big investor and board member of the Huffington Post. (You can read a thorough interview by Staci Kramer with Hippeau on paidContent.)

“It’s important for advertisers to know how big we have gotten, while also highlighting this amazing audience of influencers we have gathered,” said Coleman, in his first media chitchat since taking on the job. “I think it is the beginning of a tipping point.”

Well, of course, Coleman would say that, as the guy looking to drum up interest among marketers in spending their money on the Huffington Post.

But stats seem to indicate that consumers are increasingly liking what the Huffington Post is creating, because it is starting to surpass some well-known media icons on the Web in traffic.

While more of this increase is going to be due to a socialization of the news–the Huffington Post has an aggressive deployment of Facebook Connect called HuffPost Social News–the growth is more about building a brand people trust and seek out.

According to recent reports from both comScore (SCOR) and Nielsen Online, for example, the site just became larger than several online brands of big media companies, such as the Washington Post (WPO), in terms of unique monthly visitors.

In its September report, Nielsen clocked the Huffington Post at 9.47 million uniques, up 26 percent, while the Post site was at 9.2 million–a drop of 30 percent.

According to the Nielsen, the Huffington Post is within spitting distance of USA Today’s Web site (9.9 million), a Gannett (GCI) property.

And, it is bigger than Hearst Newspapers Digital (7.9 million) and the BBC (7.2 million).

For September, comScore has the Huffington Post (at 6.83 million) besting the Post (6.77 million)–as well as WSJ.com (6.7 million), a unit of Dow Jones, which is owned by News Corp. (NWS).

(The Wall Street Journal site, to be fair, makes a chunk of its revenue from subscription fees, rather than relying solely on advertising from traffic like the Huffington Post. And full disclosure: Dow Jones owns this site.)

In any case, big traffic is key for most news sites, and internal numbers from Google (GOOG) Analytics that Huffington Post execs cite are higher, as is typical for most sites, pegging traffic at about 27 million monthly uniques with more than two million reader comments per month.

Huffington Post co-founder and blogging icon Arianna Huffington attributes the recent boost in traffic to the site’s proclivity to “start conversations” that interest readers, such as her recent suggestion that Vice President Joe Biden should resign.

“We are aiming to go beyond just facts, to create a narrative,” said Huffington, who thinks the speed of news helps attract visitors to the site. “We think bringing journalism to a new level is exactly what people are looking for.”

Perhaps. But, even if traffic increases continue to bear her theories out, she and others have said that the Huffington Post still has not been regularly profitable despite doubling annual revenue–mostly in advertising–to what some estimate to be about $8 million in 2009.

While the site is aiming to invest rather than focus too hard on showing profits, Coleman said he would like to make revenue seven times larger in the next years, building on the performance of the site to vaunt past old media giants online.

“This kind of thing is a milestone for the marketing community,” he said. “Our goal is to be the top Internet newspaper, and this points out that we are on our way.”

To do that, he will have to spend some of the $37 million in funding that the Huffington Post has raised from venture investors.

While the edit side is using the money to expand the number of news categories, Coleman said his focus will be on building a higher caliber team of sales and marketing execs with deeper relationships to big clients.

“Unlike selling an auto page on Yahoo (YHOO), our site has a more complex sales process that takes some time for people to understand,” said Coleman. “But once they get it, it should be an easier sale.”

Until then, check out the video of the entire interview I did at the seventh D: All Things Digital conference with Huffington and Washington Post publisher Katharine Weymouth in which they talk about the future of journalism and more:

]]> http://allthingsd.com/20091020/as-traffic-booms-is-huffpo-ready-to-make-some-real-dough/feed/ 0 http://allthingsd.com/20090916/former-yahoo-and-aol-ad-exec-coleman-poised-to-join-the-huffington-post-as-president/ http://allthingsd.com/20090916/former-yahoo-and-aol-ad-exec-coleman-poised-to-join-the-huffington-post-as-president/#comments Wed, 16 Sep 2009 13:40:28 +0000 Kara Swisher http://kara.allthingsd.com/?p=18441

In the ongoing game of Internet exec musical chairs, Greg Coleman (pictured here), who has been a top exec at both Yahoo and AOL, is poised to become president of the Huffington Post, as well as chief revenue officer, several sources said.

The deal for Coleman to come on board at the privately held online news site–which has grown significantly over the last year and just added well-known online media exec Eric Hippeau as CEO–came together only recently.

And it is not clear what the role of current Huffington Post Chief Revenue Officer James Smith will be going forward.

The Coleman hiring is most likely the work of Hippeau, who has known him from Coleman’s days as head of ad sales at Yahoo (YHOO). Hippeau has been on the board of the Internet giant for many years.

Hippeau was also a key player in the $5 million investment in the Huffington Post by SoftBank Capital in 2006.

He has also been a director on its small board, which also includes co-founders Arianna Huffington and Kenny Lerer, as well as Oak Investment Partners’ Fred Harman.

Oak recently added $25 million to the funding kitty at the Huffington Post, which is headquartered in New York.

The money will be used to expand the site into the local arena, investigative news, and verticals such as tech, a section set to debut Sept. 21.

It is all being done to build on what has been a strong traffic year for the Huffington Post, which claims it has over 21 million unique monthly visitors.

Nielsen Online has pegged that at the lower figure of 8.9 million, but reported that the Huffington Post was one of the fastest-growing, year-over-year news sites.

Despite that, the site still has not been regularly profitable, despite doubling annual revenue–mostly in advertising–to what some estimate to be about $8 million in 2009.

Presumably, goosing that revenue is what Coleman is being pegged to help do–and he certainly has a lot of online advertising experience, having made stops at a lot of Internet companies in the past few years.

He was head of advertising sales at Yahoo for seven years, after another long stint at Reader’s Digest. Yahoo’s ad business grew strongly under him.

But Coleman ran into Yahoo’s management buzzsaw after trouble hit the company in 2007. He was one of the first in a long line of execs to leave the troubled company, departing in one of its many controversial reorganizations.

He was soon running a Los Angeles-based start-up called NetSeer, which focuses on ad targeting.

He then headed to AOL in February to run its Platform-A division.

But when new management was suddenly put in place by Time Warner (TWX) in the spring, Coleman left after only a few months on the job.

After taking the summer off, several sources said, he has recently been looking at a variety of jobs.

That included MySpace, where former Yahoo colleague Wenda Harris Millard–now with Media Link–was hired recently as an outside consultant to help the News Corp. (NWS) social networking site rejigger its ad business.

The Huffington Post spokesman declined to comment when BoomTown inquired about Coleman’s hiring.

]]> http://allthingsd.com/20090916/former-yahoo-and-aol-ad-exec-coleman-poised-to-join-the-huffington-post-as-president/feed/ 2 http://allthingsd.com/20090816/huffington-post-and-facebook-go-social-with-connect-on-steroids/ http://allthingsd.com/20090816/huffington-post-and-facebook-go-social-with-connect-on-steroids/#comments Mon, 17 Aug 2009 06:00:21 +0000 Kara Swisher http://kara.allthingsd.com/?p=17637

In an unusually robust collaboration using Facebook Connect, the Huffington Post is launching a feature on Monday called “HuffPost Social News,” which lets readers create a personalized social networking-like news page on the Huffington Post itself.

While the Huffington Post had already been using Facebook Connect since January–which allows readers of the site to log in using their Facebook identity to interact, which is mostly used to leave comments–this use essentially takes Facebook Connect and puts it on steroids.

“We are looking at HuffPost Social News like a ‘digital water cooler,’ because we see news going in that direction,” said Huffington Post Editor-in-Chief and co-founder Arianna Huffington, in an interview with me this weekend. “We did this because we are interested in real identities having real conversations about news.”

While the use of “social news” will be seen by some as simply a clever PR term, this kind of innovative deployment on the Huffington Post is actually a very big step for the site, especially as an opportunity to bind its readers to it more closely, presumably increasing engagement and traffic.

“This is a natural way to expand into the Facebook community and give users who desire to engage and comment with friends more privacy,” said Huffington Post CEO Eric Hippeau, with whom I also spoke earlier today. “And, like a lot of other sites, we are trying to make our site more attractive to marketers who want to engage with engaged users.”

Hippeau said he hopes that will lead to more advertising spending, although the first focus is to get people using it.

Such a move is an interesting one for Facebook too, since it is getting unusual prominence and much deeper integration on a popular news Web site, well beyond how other sites are using Facebook Connect.

If it works, HuffPost Social News will give it even more content flowing into its service, a direction that was also underscored by Facebook’s recent $50 million purchase of FriendFeed, the online content-sharing site.

Goosing interactivity and engagement is a big aim for Facebook and also lots of news sites, such as the Huffington Post.

While there are about 1.7 million comments on the site monthly, for example, if users sign up for HuffPost Social News at large rates, that could expand a lot.

This will be done via the special page, as well as a large module on every Huffington Post page you visit showing what your Facebook friends who also sign up for HuffPost Social News are posting, what’s most popular in your network and on the site itself.

As is usually the case with Facebook Connect, you can decide what is sent back to Facebook and can also hide your movements from HuffPost Social News by going into a “stealth” mode.

If left turned on, though, it captures your every click on the site, including what you are reading–which means my social site should constantly be filled with news of Britney and LiLo.

“HuffPost Social News finds your Facebook friends who are also reading HuffPost and links you together on our site so you can dive deeper into the stories you like best,” wrote Huffington in a blog post to readers of her site, which you can read in its entirely below. “The explosive growth of online social networking has fundamentally changed our relationship with news. It’s no longer something we passively take in.”

You can see that in action below on a page I created and also my module (click on the images to make them larger):

Main Personalized Page

Module

And here’s the official press release from the Huffington Post, as well as two blog posts on the subject by Arianna Huffington, one for her site and one for Facebook:

THE HUFFINGTON POST LAUNCHES NEW COLLABORATION WITH FACEBOOK–HUFFPOST SOCIAL NEWS

SOCIAL NEWS PLATFORM COMBINES POWER OF FACEBOOK WITH HUFFPOST CONTENT AND COMMUNITY

Aug 17, 2009–(New York, NY)–The Huffington Post (“HuffPost”) announced today the launch of HuffPost Social News, a collaboration between HuffPost and Facebook® that connects HuffPost users with their Facebook friends, the news they are reading and the stories they are commenting on. Through its integration of Facebook Connect, HuffPost Social News seamlessly combines the news and opinion of HuffPost with Facebook’s user experience and power to connect people.

“I’m excited to announce the launch of HuffPost Social News,” said Arianna Huffington, co-founder and editor-in-chief of The Huffington Post. “This new platform lets our community of engaged users easily share stories and post comments for friends to see–it’s HuffPost’s version of a digital water cooler, enriching and deepening conversations around the day’s news. Social media has fundamentally changed our relationship to news. It’s no longer something we passively take in. We now engage with news, share news, react to news–news has become something around which we gather, connect, and converse. HuffPost Social News makes this more dynamic than ever.”

Said Eric Hippeau, CEO of The Huffington Post: “Our goal is to make HuffPost Social News the go-to place for Facebook users to share news–both the stories they love and the stories they hate–with friends. It should also appeal to marketers interested in reaching passionate, savvy readers who care about the news and who want to share their interests with friends.”

Said Sheryl Sandberg, COO of Facebook: “The Huffington Post has led a revolution in how people discover and consume news. With the integration of Facebook Connect, HuffPost Social News is now leading the way to make news even more of a social experience, giving people new ways to share and filter news and current events through their networks of friends on Facebook.”

HuffPost Social News allows users to increase their presence on The Huffington Post by automatically creating personalized profile pages that keep track of all their HuffPost Social News friends. At the same time, users retain complete control over what stories and comments are shared with their Social News friends, as well as what is posted to their Facebook Wall, and into their Facebook stream. Users can also see how their friends are voting on HuffPost polls and their contributions to “Eyes & Ears,” Huffpost’s citizen journalism platform.

Said Paul Berry, Chief Technology Officer of The Huffington Post: “From the first brainstorming session in Facebook’s office to the integration of Facebook Connect, it has been truly exciting to collaborate in building this product. The future of news is social, and I’m tremendously proud that HuffPost has been so early in reaching this important milestone in how news is shared online.”

Your HuffPost Experience Is About to Get a Lot More Social!

I’m excited to announce the launch of HuffPost Social News–a collaboration with Facebook that connects HuffPost users to their Facebook friends, the news they are reading, and the stories they are commenting on.

When you sign up for it–and I hope you will right now–HuffPost Social News finds your Facebook friends who are also reading HuffPost and links you together on our site so you can dive deeper into the stories you like best. (But don’t worry, you’ll still have complete control over what stories and comments are shared with your friends, as well as what goes on your Facebook wall, and into your friends’ news feeds.)

The explosive growth of online social networking has fundamentally changed our relationship with news. It’s no longer something we passively take in. We now engage with news, react to news, and share news. News has become an important element of community–something around which we gather, connect, and converse. And we can all become part of the evolution of a story now–expanding it with comments and links to relevant information, adding facts and differing points of views.

HuffPost Social News makes this easier and more dynamic than ever. It takes social news to a whole new level. It will turbo-charge your online conversations and connections, and allow you to build and develop a community that follows what you read and care about.

Thanks to your passion and commitment, HuffPost has an incredibly active and vibrant community. You posted over 1.7 million comments on the site last month alone–with many stories attracting more than 10,000 comments. The one drawback: it’s sometimes hard to keep up with it all.

With HuffPost Social News, you can be sure that your comments won’t get lost in the mix–and that the people you care most about will see what you have to say about the stories you love or are angered by, delivered in real time. And you’ll be able to easily and immediately see who is replying to any of your comments. Of course, your comments will still appear on the full thread, so anyone reading HuffPost will be able to see them.

HuffPost Social News also taps into the other coming big trend in news: personalization. People connecting to each other using their real identities and having real conversations.

HuffPost Social News allows you to have a greater presence on our site by automatically creating personalized profile pages that keep track of all your HuffPost Social News friends–collecting all the comments you have made and the stories you have read, as well as the comments made and stories read by your friends. Think of it as HuffPost’s new digital water cooler.

HuffPost Social News is just one early piece of the social transformation of the news industry. We will be adding more social features and personalization in the coming months. The news is simply more interesting and engaging when we experience it with friends. It is an exciting change and we are thrilled to be part of it.

Sign up here to get started. And let us know what you think. HuffPost Social News is your Huffington Post.

The Future of News Will Be Social

Arianna Huffington is the co-founder and editor-in-chief of The Huffington Post, a nationally syndicated columnist, and author of 12 books. With HuffPost launching a new social news feature today using Facebook Connect, we asked her to share her perspective on the ways social media is shaping the future of news.

Despite all the current hand-wringing about the dire state of newspapers, we are actually in the midst of a Golden Age for news consumers. We can surf the net, use search engines, access the best stories from around the world, and interact by commenting and forming communities.

The days of publishing pooh-bahs dictating to us what’s important and what’s not are over. We now can get the news we want, when we want it, how we want it and where we want it. The Web has given us control over the news we consume. Now the explosive growth of online social networking is fundamentally changing our relationship with news as well. It’s no longer something we passively take in.

We now engage with news, react to news and share news. News has become an important element of community–something around which we gather, connect and converse. We all are part of the evolution of a story now–expanding it with comments and links to relevant information, adding facts and differing points of views. In short, the news has become social.

And it will become even more community-powered: stories will be collaboratively produced by editors and the community, and conversations, opinion, and reader reactions will be seamlessly integrated into the news experience.

I’ve always been obsessed with news. As the daughter of a newspaperman, I grew up with the smell of newsprint and the buzz of breaking news. I’ve also always enjoyed bringing people together from different parts of my life and facilitating interesting conversations.

In the past, these have taken place around dinner tables, on group hikes or at book parties. Now, via cyberspace, those conversations have gone global. And they are happening in real time.

One of the reasons we launched The Huffington Post was to enhance and facilitate those conversations. While our goal was to create a one-stop spot for news and opinion with an attitude, community has always been a key element of the site. The launch of HuffPost Social News today brings together my two loves:nonstop news and the passionate discussion of the news with my friends.

Using Facebook Connect, HuffPost Social News weaves the news and opinion of HuffPost with the social capabilities of Facebook. It connects HuffPost users to their Facebook friends, the news they are reading, and the stories they are commenting on.

Want to know what your friends are reading? Check out their Facebook-powered stream on HuffPost and the personalized Social News widget that appears as you navigate the site. Want to see your friends’ comments above the thousands of strangers commenting on a story? Log in to HuffPost Social News using Facebook Connect and that happens automatically.

HuffPost Social News also taps into another big trend I see emerging in news: personalization. People connect to each other using their real identities and have real conversations. HuffPost Social News is just one early piece of the social transformation of the news industry. We will be adding more social features and personalization in the coming months, and I expect to see news organizations around the world doing the same.

The news is simply more interesting and engaging when we experience it with friends.

]]> http://allthingsd.com/20090816/huffington-post-and-facebook-go-social-with-connect-on-steroids/feed/ 5 http://allthingsd.com/20090622/arianna-talks-about-new-ceo-new-local-sites-and-paying-for-content/ http://allthingsd.com/20090622/arianna-talks-about-new-ceo-new-local-sites-and-paying-for-content/#comments Mon, 22 Jun 2009 10:34:46 +0000 Kara Swisher http://kara.allthingsd.com/?p=14780

Huffington Post co-founder and blogging diva Arianna Huffington was in Berkeley this past weekend, keynoting at the Craigslist Foundation Boot Camp 2009.

So, BoomTown took the opportunity to motor over the Bay Bridge to catch Huffington on video between sessions, talking about all the big changes at the news Web site of late.

The interview includes the replacement of its CEO with well-known media exec Eric Hippeau, the launch today of another of its local sites–this time, New York–in an effort to move beyond politics, and what she thinks about the controversies around paying for content on the Web.

Here’s the interview:

]]> http://allthingsd.com/20090622/arianna-talks-about-new-ceo-new-local-sites-and-paying-for-content/feed/ 0 http://allthingsd.com/20090615/boomtown-interviews-arianna-ken-and-eric-about-huffington-post-exec-changes-bam/ http://allthingsd.com/20090615/boomtown-interviews-arianna-ken-and-eric-about-huffington-post-exec-changes-bam/#comments Tue, 16 Jun 2009 01:18:43 +0000 Kara Swisher http://kara.allthingsd.com/?p=14544

Apparently, if you want to think about the growth of the Huffington Post as a culinary dish, perhaps today’s replacement of CEO Betsy Morgan with longtime online media powerhouse Eric Hippeau might appear under the Emeril Lagasse cooking cliché: Let’s kick it up a notch!

Both co-founders of the online media site, Arianna Huffington and Kenneth Lerer, said as much in interviews I did with them this afternoon, after news of the change got out–even as they praised Morgan for the strong work she had done in the 18 months she had been in charge.

“The deal is that we simply have been growing so fast that we needed more firepower to accelerate in expanding the site and monetizing it,” said Huffington, who is also editor-in-chief of the Web news site (and pictured above).

“Things are going great, but things could be going even greater,” added Lerer, who is chairman of the Huffington Post, noting that a more experienced exec was needed at this juncture to take the business to the next level.

“Eric is a peer at all the big companies we need to partner and deal with…and right now, while things are difficult in the economy, is the time when you can really build a company and we had to take advantage of that opportunity.”

So, ipso facto, Morgan was out in favor of Hippeau, who was the key player in the $5 million investment in the Huffington Post by SoftBank Capital in 2006.

Hippeau is a director on its small board, which also includes Huffington, Lerer and Oak Investment Partners’ Fred Harman. Morgan will be vacating her board seat.

Oak recently added $25 million to the funding kitty at the Huffington Post, money that Lerer and Huffington said had not been used yet.

But it soon will be, both noted, with the site expanding aggressively into the local arena, investigative news and verticals such as tech.

It is all being done to build on what has been a strong traffic year for the Huffington Post, which claims it has over 21 million unique monthly visitors.

Nielsen Online has pegged that at the lower figure of 8.9 million, but reported that the Huffington Post was one of the fastest-growing, year-over-year news sites.

Despite that, the site still has not been regularly profitable, said Huffington, despite doubling annual revenue–mostly in advertising–to what some estimate to be about $8 million in 2009.

Hippeau (pictured here) has a lot of experience working at a panoply of early online media businesses, including as CEO of Ziff-Davis.

He has also been a longtime Web investor, pushing for SoftBank’s early investment in Yahoo (YHOO), where Hippeau remains a board member.

That should not present a conflict for Yahoo, said Hippeau, which had a short-lived publishing partnership with the Huffington Post.

Hippeau, who has been a managing partner at SoftBank, will become a special partner and adviser to the investment firm. In this capacity, he will continue to work with three start-ups–Buddy Media, BuzzFeed and ThumbPlay.

Hippeau, who is now diving back into an operating role for the first time in almost a decade, said it was hard to pass up the chance to run the New York-based Huffington Post.

“I could not pass such an opportunity, especially with the explosion in the delivery of the news and opinion on the Web,” he said. “This is really the place to build the next really big brand.”

To get to that level, Hippeau said that a lot of things have to happen at the site going forward.

“Clearly we have got to make the revenues commensurate with traffic of the site and size of the opportunity,” he said. “At the same time, we have got to make sure we are very community-focused and using all kinds of new tools to increase engagement.”

Hippeau noted that journalism was changing radically, and “what people want to know is what are people thinking and how can I contribute and we are just at the beginning of this phase.”

Of particular interest to him are real-time data and real-time communications–on sites like Twitter–and the growth of smartphone usage.

“We are getting into a situation in the U.S., where it is so much easier to access all kinds of information and so much more portable,” said Hippeau. “Everyone has talked about convergence for a long time and it is finally here and we are poised to take great advantage of that.”

The moves at the Huffington Post were first reported by paidContent.org.

Huffington appeared onstage at the recent D: All Things Digital conference with Washington Post (WPO) publisher Katharine Weymouth.

Here is a highlights video of the interview I did with them:

]]> http://allthingsd.com/20090615/boomtown-interviews-arianna-ken-and-eric-about-huffington-post-exec-changes-bam/feed/ 0 http://allthingsd.com/20090615/huffpo-on-its-new-ceo-the-official-statement/ http://allthingsd.com/20090615/huffpo-on-its-new-ceo-the-official-statement/#comments Mon, 15 Jun 2009 20:25:56 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=19554 Big leadership shake-up at The Huffington Post today. As first reported by PaidContent, the publication has named Eric Hippeau, a managing partner at investor SoftBank Capital and HuffPo board member, as CEO. He’ll replace Betsy Morgan, who is leaving the company after less than two years on the job. The official word from HuffPo, below.

THE HUFFINGTON POST NAMES SOFTBANK MANAGING PARTNER ERIC HIPPEAU NEW CHIEF EXECUTIVE OFFICER

New York, NY, June 15, 2009 — The Huffington Post (huffingtonpost.com) announced today that Eric Hippeau, managing partner of SoftBank Capital and former CEO of Ziff-Davis, has been named the company’s new chief executive officer. Current CEO Betsy Morgan, who is leaving the company, will be working closely with Eric Hippeau on the transition. The Huffington Post co-founders Arianna Huffington and Kenneth Lerer made the announcement. Over the last year, The Huffington Post has been the fastest growing news site as measured by Nielsen Online and in December raised $25 million from Oak Investment Partners.

Mr. Hippeau has worked closely with The Huffington Post since SoftBank Capital led a Series-A company financing in 2006. Prior to SoftBank Capital, Mr. Hippeau was CEO of Ziff-Davis, when it was the largest media company in the technology sector. Mr. Hippeau led the company’s online initiatives, including the development of ZDNet into an online brand. He was also instrumental in SoftBank’s first investment in Yahoo! in 1995. In addition, Mr. Hippeau was responsible for founding ZDTV, a cable channel dedicated to technology and the Internet, and an early success in integrating television and the Web.

Betsy Morgan, who will also be vacating her seat on the Company Board, joined The Huffington Post as CEO from CBS News in October 2007. Over the last 18 months, Ms. Morgan has played a pivotal role in expanding the company’s audience, content and business ventures. Since she assumed the role of CEO, The Huffington Post has seen a six-fold increase in its audience and has doubled its advertising revenue. The company has nearly doubled its staff and expanded its senior team to include a Chief Financial Officer, Managing Editor and a SVP of Business Development. Under her leadership, the site has expanded its content verticals from five to ten and raised $25 million from Oak Investment Partners.

Said Arianna Huffington, editor in chief of The Huffington Post, “I’m delighted that Eric is joining the company as CEO. Having worked closely with him for the last three years, I know firsthand what an invaluable asset he has been in our expansion. And now, given his impressive background in the industry and his intimate knowledge of HuffPost, Eric is uniquely able to hit the ground running as the company takes its expansion to the next level. Betsy has been the perfect leader for The Huffington Post during a critical period in the company’s life and helped build our brand tremendously. I have loved working with her.”

Said Kenneth Lerer, chairman of The Huffington Post, “Betsy has done a fantastic job as the CEO of our company. Under her leadership, we have significantly increased our traffic and advertising and have built a lasting brand. We wish her all the best and we will be working with her closely on a smooth transition. Eric promises to bring an unmatched set of experiences in publishing, web businesses, advertising and technology that will allow us to grow our company across the board.”

Said Eric Hippeau, “As an early investor in HuffPost, I recognized the site’s potential to redefine how news and opinion is disseminated in the digital world — thanks to Arianna’s and Kenny’s vision. I am looking forward to being part of the team which will establish The Huffington Post as a major, long-lasting media brand.”

Said Betsy Morgan, “As a shareholder in the company, I look forward to HuffPost’s continued success. The site is now more than blogging and politics; it is a genuine source of the news of the day and it reflects the culture of our times. I have assembled an amazing team that will continue to generate a fantastic product and grow the business. Together we have exceeded many of our goals, moving the company beyond the political cycle of last year to realize broad success every day.”

Mr. Hippeau joined Ziff-Davis in 1989 as Publisher of PC magazine and he became its Chairman and CEO in 1993. In 1995, SoftBank acquired Ziff-Davis, and Mr. Hippeau continued in the role of CEO until 2000, when the company was sold. During his career at Ziff-Davis, Mr. Hippeau recognized early the prospects for the growth of online media. Under his stewardship, ZDNet became one of the earliest examples of a strong online business model evolving from traditional magazine content. He also directed several successful magazines and marketing service launches in the technology and Internet fields.

Mr. Hippeau was President of SoftBank International Ventures, where he established SoftBank’s international private equity funds and expanded them into Europe, Latin America and Asia. He was also SoftBank Capital’s board representative for its direct investments in industry leading companies, such as Yahoo Inc, Geocities and CNET. Mr. Hippeau serves on the Boards of Yahoo, Inc and Starwood Hotels and Resorts Worldwide.

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