After buying the Huffington Post for $315 million, AOL gave Ms. Huffington editorial oversight of all its properties, including tech-news site TechCrunch, the patch.com network of local news sites, MovieFone and MapQuest. In addition, more than 30 AOL properties, such as Politics Daily, were absorbed by the Huffington Post.

Read the rest of this post on the original site »

AOL, which has had some turmoil in its executive ranks of late, has promoted Jim Norton to be its new head of sales.

The New York Internet company said Norton would be “responsible for sales on all of AOL’s owned & operated properties, including sites like The Huffington Post, Engadget, Stylelist and MapQuest,” as well as a range of other areas.

AOL has rejiggered its advertising execs and strategies several times in recent years, and Norton is not precisely replacing its former advertising head Jeff Levick (who left for Spotify) and is more akin to another top former AOL ad exec Mark Ellis (who left for Yahoo).

That job has now been folded into the portfolio of Chief Revenue Officer Ned Brody, to whom Norton will report.

“We need to become faster in our operations,” said Brody in an interview this morning about the shift. “We brought in Jim to bring in singular focus on selling.”

Brody said that AOL is working on how to increase the “value proposition” of its variety of advertising and marketing offerings and to quicken the process.

Norton came to AOL from Google in 2009 and before that worked in a wide range of ad jobs.

Here’s the official press release on the move:

JIM NORTON NAMED HEAD OF AOL SALES

New York, NY — December 9, 2011 — AOL Inc. (NYSE: AOL) and Ned Brody, Chief Revenue Officer, today announced the promotion of Jim Norton to head of AOL Sales. Effective today, Jim will be responsible for sales on all of AOL’s owned & operated properties, including sites like The Huffington Post, Engadget, Stylelist and MapQuest. Additionally, he will also lead the sales of all cross platform marketing solutions, including display/Project Devil initiative, video and mobile. This announcement is reflective of AOL’s commitment to putting the strongest leaders in place to service clients in the most efficient and effective manner. Jim will continue to report to Brody.

“Jim has proven himself within AOL to be a fantastic leader,” said Brody. “He not only has deep knowledge and incredible expertise in the marketplace, but a real ability to effect change.” Brody added, “Customers want the best products and packaged solutions all in a fast and efficient manner. Consolidation of leadership under Jim will place even more focus on putting our clients front and center and deliver on their goals and needs.”

“It’s a tremendous honor and opportunity to take on this new leadership role,” said Norton. “It allows me to continue to work with some of the best sales professionals in the business. It’s also a privilege to work with some of the world’s biggest brands.” He added, “We want to continue to be the preferred media partner for marketers and agencies.”

Jim joined AOL in 2009 and was SVP, AOL Advertising’s Advance Sales team, which focuses on national and regional advertisers across all categories, as well as new business. He was also VP of Product Sales working with AOL product teams on maximizing their offerings to advertisers, including MapQuest, Patch, AOL Mail, AOL Video and Mobile. He also managed AOL’s Search and Sponsored Listings business, and helped launch and manage AOL’s self service advertising platform, Ad Desk.

Jim has over 20 years of experience in the media business. Prior to joining AOL, he spent 3 years at Google most recently as National Sales Manager for Google’s Agency Activation team. Prior to that role, he was a Senior Account Executive on the National Tech B2B team servicing many of the leading global tech marketers. He’s also held a number of traditional sales and marketing roles, including four years as Sales Manager at Tribune Broadcasting’s WLVI-TV (Boston’s WB), radio ad sales at Kiss 108FM and a variety of brand marketing roles at Miller Brewing Company and GMR Marketing. He’s a life long Bostonian and graduated from Boston College with a BA in Communications and BC’s Carroll Graduate School of Business with an MBA in Marketing and Technology. He’s married with three children and splits his time between Boston and New York City.

Here’s an internal memo, titled “Platform for Growth,” just sent out by AOL CEO Tim Armstrong, in which he buries the lede by noting the business partner of content czar Arianna Huffington, Jon Brod, will move to work on its local Patch effort and MapQuest mapping unit full time.

General managers previously reporting to Brod will now report directly to Armstrong. Brod came to AOL from its acquisition of Patch, which Brod ran.

Second, AOL also elevated an exec as Chief Analytics Officer and head of something called Project Management Organization.

And, the company has further simplified its branding structure by moving some of its brands under the Huffington Post Media label, which it had already talked about doing. It’s essentially a streamlining of a previous streamlining.

Here is the email:

From: Tim Armstrong
Date: Tue, 28 Jun 2011 08:29:19 -0400
To: Tim Armstrong
Subject: Platform for Growth

AOLers –

We spent the last week in France at the Cannes Lions Festival, which is a global meeting of the advertising community (the technology industry has CES and Cannes is becoming the “CES” of global advertising). After finishing Investor Day and the global company meeting two weeks ago, the trip to Cannes further underlined the opportunity we are starting to take advantage of — that content and brands are the next wave of the Internet.

Content, Brand Advertising, Video, and Local are going to be at the center of the web and mobile for the next decade and we have made bold moves to position AOL at the forefront of those areas. We have a powerful portfolio of assets as a company and by matching our people, brands, and marketplace-defining products, we will simply get stronger, better and faster.

We are going to further strengthen our content brand portfolio to put maximum leverage into key areas of growth. We are also investing in the leadership structure of the brands and the overall analytical framework we have as a company.

The brand portfolio simplification and investments we are announcing today come from our core strategy, the metrics of growth we see in the business today, and the expanding opportunities we see in the marketplace. Every brand metric was thoroughly reviewed and thoughtfully discussed to get to the list we are sharing with you today. There are a set of brands we will continue to run as stand-alone brands because they have built strong organic traffic, significant customer bases, and unique market positions. There is another set of brands that will gain usage, a larger customer base, and deeper content by becoming part of the Huffington Post platform.

We want to make this transition as simple and intuitive as possible for employees, consumers, and advertisers, so we’ve set up a link to the brand site to review the complete list of brands and USPs.

The AOL Huffington Post Media Group technology platform is the end result of a company wide effort combining the very best content, video, ad, and data technologies from the Blogsmith platform with the best technologies from Huffington Post platform — and we’ve been hard at work adding many new capabilities as well. This combined platform simply has no equal in the digital content space and features an innovative approach to coverage, with edit and tech teams working closely together, and a “hyper-efficient editor” model that enables editors and reporters to rapidly deploy all the tools available to create and disseminate stories. We have integrated in 5min video, AOL demand analytics, and AOL’s data platform deeply into the system, and we will soon be running all of the advertising through AOL’s ad platform. Editors are not silo-ed but empowered to quickly bring their stories to life — and to millions of readers. This leads to engagement on a massive scale, creating an editorial ecosystem with high-quality content, leading edge blogging, commenting, and social sharing capabilities that are easily scale-able and enable real-time speed and a more holistic approach to covering news and engaging audiences.

Here are some quick statistics on the benefits we are seeing in combining sets of brands and platforms:

· When we migrated AOL News to the HuffPost platform we saw significant increases in organic traffic with search entries per UV increasing 195% and social entries per UV up 142%.
· By combining Politics Daily with HuffPost Politics content, social interactions, which include HuffPost comments, FB comments, shares and re-shares, FB Likes, tweets, re-tweets, and email shares reached 3.3MM.

· Adopting Huffington Post style blogging in the Patch platform allowed us to sign up 5,000 bloggers in 2 weeks.

The goals of the brand and platform investments are the following:

1. Grow traffic and grow revenue with high quality experiences for consumers and advertisers
2. Be the leader in content CMS and CMS for Ads (Devil + Social)
3. Simplify the business process and increase profitability in each vertical area
4. Scale video and International
5. Create a culture of speed and transparency on all fronts

In support of the brand investments, we are also making people investments. The current GM structure around the content brands will report to me and I have met with all the GM’s to discuss each vertical opportunity. Local will be broken out as a vertical and is a space where AOL is in a leadership position. Jon Brod will focus full-time on AOL’s local efforts, including Patch and Mapquest. Jon is the co-founder of Patch and has spent the past few months successfully integrating the Huffington Post and AOL media. AOL local has a lot of exciting products coming out this summer and we will be connecting many of those products to our larger business.

We are also announcing a new position that will have a positive impact across AOL — the formation of a Chief Analytics Officer and Project Management Organization (PMO). Tim Lemmon, currently working in Ned Brody’s Advertising.com Group, is being promoted to CAO, reporting directly to me, and will oversee and drive analytics and project management on a company-wide basis. Data and analytics are key to our success and we will continue to look for Tim to provide fact-based guidance and executional focus for all of AOL. Tim’s current AOL Analytics team including Pricing and Yield Management will continue to report to him.

I’ll be holding a working meeting today at 11am EDT with the Sales team to discuss the new brand structure, the HuffPost platform, and the supporting org structure. The meeting information is available on AOL Today and anyone is invited to dial in if you are interested in learning more. Go AOL! -TA

Talking to AOL CEO Tim Armstrong earlier this week about its investors day tomorrow, he used the word “execution” a lot.

No, not the kind evoking a firing squad if he did not succeed at turning around the New York-based Internet giant soon as he has long promised.

Instead, Armstrong was referring to reassuring big shareholders and Wall Street analysts that AOL was now in a mode of making sure all its many moves to turn around the company will finally begin to pay off.

“Basically, our point is going to be about fully operating around the strategy we’ve built,” said Armstrong in a wide-ranging interview. “It seems right for investors to ask about executing on what we have been doing for the last year and a half.”

It’s certainly the right message for the charismatic executive to be delivering, as he and other top AOL execs present their plans moving forward, especially after what has turned out to be a very hyperactive year.

After deep layoffs, a massive rejiggering of its management ranks and a number of shifts of its business focus, without much advertising increase to show for it yet, Armstrong has also pushed through a series of acquisitions.

It culminated in the high-profile and decidedly dramatic purchase of the Huffington Post in January for $350 million in cash.

Now, said Armstrong, deals will be taking a back seat to products.

“We are diligently staying on strategy and really focusing on products and services,” said Armstrong. “We have laid out the path we are on and now investors want proof of the concept.”

To Armstrong, that means the push of “branded content” and a continued focus on significant properties in key topic areas.

Tomorrow, in news that could worry investors, AOL will be noting that traffic is flat year over year, but explaining that it is due to the outsourcing of its sports and health sites.

“If you added that back in, we would have had a phenomenal year of growth,” said Armstrong. “Our main point will be that this is the right path for AOL.”

In fact, in an unusual wording, he said AOL was betting on the “urbanization” of the Web around big branded sites, which is, in many ways, exactly where the Web was a decade ago with Yahoo, Excite and others.

But Armstrong will be making the point that this retro idea is perfect for today, as marketers look for quality content that attracts big audiences, which has seen its most energetic application in the Huffington Post.

Thus, his linchpin remains the flashy news site’s even flashier co-founder Arianna Huffington, who has cut a very wide swath through AOL’s content efforts since Amstrong made her media czar of the company.

As Armstrong did, she also stressed the focus on unique visitors and ad growth, more video and a laser focus on local.

This includes shoving editorial into every AOL property, including unlikely ones such as Moviefone and MapQuest, and integrating it all to point back to the Huffington Post mothership.

“Much better editorial integration is a centerpiece of what we are doing, surfacing content in new places it was not before,” said Huffington, who used examples of local stories via its Patch unit that have gone global with a special push.

And by global, that also means the creation of new content sites in Europe and elsewhere, in order to build this unusual dream of a fully aggregating world.

“It is a big test of the HuffPo platform aggregation to do this,” said Huffington, who has clearly longed for the kind of money and staff to do this for a very long time. “It has moved a lot faster than I thought it would … but it feels good to be moving on so many fronts at once.”

Many fronts indeed, which might make investors pause. So far, those shareholders have had a continued wait-and-see attitude toward AOL, which has seen its stock decline almost 13 percent from its late 2009 IPO debut.

That’s mostly due to worries about whether the continued and expected fall-off of its lucrative access business can be met by similar increases in its ad business.

That share drop has been especially steep since the beginning of the year, but it has also not been drastic, indicating an interest in continuing to believe Armstrong’s confident — well, confidently delivered, at least — narrative.

As Citi’s Mark Mahaney wrote in a one-hand-other-hand note yesterday about the investor day:

Positives: 1) AOL still remains a top 5 U.S. Internet property; 2) In the latest quarter, AOL’s Display segment grew Y/Y for the first time in ~3 years, and this improvement seems sustainable; 3) At 4x ’11 EV/EBITDA, AOL’s valuation is among the lowest of any ’Net Stock. Negatives: 1) Deteriorating fundamentals; 2) Significant market share losses — ’Net usage, Display Advertising revenue & Search queries; 3) A significant profit hole from the structural decline of its Subs biz; 4) Substantial competitive risk; and 5) An unproven (@ AOL) management team.

“We all like Tim and what he says makes a lot of sense,” added one big investor, who is also attending and has many questions about the efficacy of what AOL is doing, in a common sentiment among its large shareholders. “But we also need to see real results soon.”

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.)

Using technology developed by New York-based start-up Yext Inc., some of the Web’s top locally oriented sites, such as AOL Inc.’s MapQuest and Yelp Inc., are testing out a new way to attract ad dollars from local businesses ranging from veterinary clinics to gyms to restaurants.

The sites are offering a $99-a-month service that allows businesses to add a marketing message, such as a special offer, to the basic phone-and-address information that appears about them in local search results or map listings. The message tag would appear with the company’s listing across more than a dozen local websites, including MapQuest, IAC/InterActive Corp.’s CityGrid, Yelp and Yellowbook.

Read the rest of this post on the original site

Over the years, printers have progressively shifted from PC accessories to devices that can work independent of PCs. They started small, as dedicated 4×6 printers that had built-in memory-card readers and used basic photo-editing capabilities, and have matured into models like last year’s HP Photosmart Premium All-in-One with Touch-Smart Web that offered apps for printable things like maps, coloring book pages and recipes.

The $400 HP e-All-in-One (http://3.ly/DP8b) takes this concept a step further by enabling even more independence from the PC because its tablet—named the Zeen—is more robust and can browse the Web, check email in a dedicated email program and run a limited selection of apps. It also works as a stand-alone tablet when detached from the e-All-in-One, though it only connects to the Internet via Wi-Fi rather than a cellular connection. It runs on the Android 2.1 operating system, but can only access certain apps rather than any app in the Android Market.

Perhaps an even more important new feature is that this all-in-one will print anything emailed to it from any device connected to the Internet, thanks to ePrint, a cloud-based printing system. This system assigns an email address to the e-All-in-One during its set-up and almost anything sent to that email address will print out, including attachments, no matter where the email is coming from.

One catch is that you must only send the document to the e-All-in-One’s email address and can’t CC anyone else or add another address to the “to” line of the email. A spokesman for HP said that this is done to prevent spam print-outs because batches sent to several people won’t print.

HP also has an exclusive relationship with products running Apple’s latest iOS 4.2 operating system for hand-held devices. Apple’s iPads, iPhones, and iPod touches now have a built-in feature called AirPrint which allows them to print anything directly to HP’s new ePrint printers as long as these devices and the printer are connected to the same Wi-Fi network. I tested this several times using an iPhone and it worked, printing Web pages, emails and photos. I liked the ease of using ePrint and AirPrint. Printouts looked sharp and printed quickly.

But I found the concept behind the e-All-in-One’s detachable tablet screen to be both alluring and confusing. It’s great to be able to do more with the printer’s touch screen and apps—but you don’t want to stand at a desk looking down at this screen, so it makes sense that the tablet is detachable. On the other hand, tablets often work in place of printed paper. I use my iPad for things like finding a recipe online, standing the iPad on my kitchen counter and cooking from that on-screen recipe. If I used the eStation All-in-One like that, I would ultimately print less often, which seems to defeat the purpose of having this big thing in your home. The HP eStation All-in-One measures about 18 inches wide and about 14 inches deep.

HP’s Zeen tablet can be detached from the e-station, but its uses as a stand-alone are questionable.

In order to save energy, the eStation All-in-One goes to sleep when it hasn’t been used for 15 minutes. This is a fine idea for environmental reasons, but in sleep mode, it also turns off its connection to the local Wi-Fi network. This means that if documents are emailed to its assigned address it may not print if it’s not awake and online. An HP spokesman said the company recently issued a fix for this problem that wakes up the printer when something is sent to it, but not all printers have been updated.

The Zeen tablet’s battery recharges every time it’s docked in the eStation All-in-One’s base, and HP estimates that its battery life is around four to six hours with Wi-Fi turned on. Hard buttons for volume and power are hidden on the Zeen’s back edge, as are speakers. A spokesman for HP said that eStation All-in-Ones will be updated early next year to run Android 2.2, which is faster and plays Flash videos.

The Zeen’s four gigabytes of internal memory hold roughly 100 apps, 35 of which come pre-loaded on the tablet. These include apps for MapQuest, Disney, Facebook and the Barnes and Noble bookstore, from which digital books, magazines and newspapers can be purchased and downloaded. Photos, videos, music and other files must be stored on an SD card in the Zeen’s SD card slot.

All documents sent to the e-All-in-One using HP’s ePrint can be seen online at hp.com/go/ePrintCenter as long as users register their printer and set up an account, which I did in about two minutes. Here, too, users can add or remove apps from their printer. I preferred adding and removing apps directly from my Zeen tablet’s screen, but it takes some digging to find the Add More icon for adding apps. Over a dozen HP products support ePrint; they range from $100 to $450.

The concept of ePrint is a smart one, but the printer’s tendency to go into sleep mode to save energy is a problem. I like that the Zeen tablet detaches from the e-All-in-One, but its functionality as a tablet with limited apps and capabilities isn’t very sensible.

Edited by Walter S. Mossberg

Write to Katherine Boehret at mossbergsolution@wsj.com

]]> http://allthingsd.com/20101214/hp-photosmart-estation-printer-zeen-tablet-review/feed/ 0 http://allthingsd.com/20100709/aols-mapquest-looks-to-wikipedia-model-for-mapping/ http://allthingsd.com/20100709/aols-mapquest-looks-to-wikipedia-model-for-mapping/#comments Fri, 09 Jul 2010 12:00:42 +0000 Jennifer Valentino-DeVries http://voices.allthingsd.com/?p=27001 MapQuest, the No. 2 Internet-mapping service after Google’s (GOOG), is taking the first steps toward a Wikipedia-like model — in which users would generate the maps themselves and combine the results for everyone to use.

The company, a subsidiary of AOL, plans to announce Friday morning that it is launching a site in the U.K. based on a project called OpenStreetMap, which is dedicated to user-created mapping. The OpenStreetMap project has caught on most quickly in Europe, which is why MapQuest is starting there, but AOL also will devote $1 million to support the growth of open-source mapping in the U.S. The site has a U.K. address — http://open.mapquest.co.uk — but users can navigate to user-created maps from any country.

Read the rest of this post on the original site

]]> http://allthingsd.com/20100709/aols-mapquest-looks-to-wikipedia-model-for-mapping/feed/ 0 http://allthingsd.com/20100504/lets-go-to-the-videotape-sb-nations-jim-bankoff-speaks/ http://allthingsd.com/20100504/lets-go-to-the-videotape-sb-nations-jim-bankoff-speaks/#comments Tue, 04 May 2010 15:30:55 +0000 Kara Swisher http://kara.allthingsd.com/?p=27973 While in Washington, D.C., recently, I paid a visit to Jim Bankoff, who is now helming a fascinating start-up called SB Nation, a fast-growing sports blog and news platform.

With over 200 individual communities, it’s a mix of professional and user-generated content aimed at engaging passionate fans.

A former AOL (AOL) exec, Bankoff (pictured here) has worked on such products as TMZ.com, Moviefone, MapQuest and Netscape, as well as its AIM and ICQ messaging offerings.

After that, he became a senior adviser to Providence Equity Partners.

SB Nation has raised about $13 million in total venture funding from Accel Partners, Allen & Company, Comcast Interactive Capital, as well as angel investors such as Ted Leonsis and others in Silicon Valley.

People familiar with the situation said SB Nation’s post-investment valuation, after its most recent round last summer, is about $30 million.

SB Nation has used its funding to grow like gangbusters, especially since Bankoff arrived in late 2008 as chairman and CEO.

While it has been around since 2003, founded by DailyKos’s Markos Moulitsas and others, the start-up has been aiming more at the sweet spot of local sports pages, especially as newspapers have become weaker.

Here’s the video of my interview with Bankoff, as well as a tour of its D.C. HQ:

]]> http://allthingsd.com/20100504/lets-go-to-the-videotape-sb-nations-jim-bankoff-speaks/feed/ 2 http://allthingsd.com/20091209/live-from-new-york-tim-armstrong-makes-one-last-pitch-for-aol/ http://allthingsd.com/20091209/live-from-new-york-tim-armstrong-makes-one-last-pitch-for-aol/#comments Wed, 09 Dec 2009 18:15:56 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=13757 AOL is about to cut ties to Time Warner (TWX), and CEO Tim Armstrong has been making his case to current and potential investors. Here’s one last pitch, delivered to the crowd at the annual UBS (UBS AG) Media and Communications Conference in New York.

Note to readers and/or Engadget editors: This liveblog is not an official transcript. Rather, it is a compilation of quotes, paraphrased statements and ad-lib observations written and posted to the Web as quickly as possible. It is not intended as a transcript and should not be interpreted as one. Cool? Cool.

Q: Why leave Google, which is awesome, for AOL, which is not?

A: The Internet is still at an early stage. AOL is a global brand, and that’s hard to build. We have a unique set of assets. AOL can be core and central to where the next $50, $100 billion are going. And we have unique talent to make a run at it.

Q: Please explain your strategy.

A: “Content, ads and communication.”

Q: Why is this turnaround different than other AOL turnarounds?

A: I can tell you whatever, but you need to see metrics move to believe me. But we have a good strategy. “You have to maniacal about the piping,” and in the past AOL wasn’t. We had terrible integration of acquisitions, systems. You want to be able to take $25, $40 million ad deals and run them through the piping and we haven’t been able to do that.

Q: Please explain AOL’s content strategy.

A: We launched our content platform last night. A single platform. It uses data, helps scale to content producers and will work with thousands of partners. It differs from Demand Media et al in that we already have scale for production and scale for advertising. We can snap those two platforms together. [Note: No mention of robots yet.]

Q: Is AOL interested in video or other self-produced stuff?

A: Sure. Video’s important to us. We’re also interested in what we would call “niche at scale.” As a collective whole, we have 70 or 80 properties and will go up to 100. We want to aggregate uniques that will be attractive to advertisers. We want to own the equivalent of the top 80 or 90 cable channels on the Internet. We’re also very interested in local, via Patch [which Armstrong invested in before AOL bought it].

Q: How do you market all this content?

A: By the way, everyone thinks our traffic comes from the access business. That’s not true. It’s a minority of our traffic. Also, when you produce your own content, you can distribute it and get traffic back. You also need to make this stuff shareable on the Web. We’re getting mass scale distribution from platforms like Twitter and, of course, search.

Q: There’s a big gap between your monetization and Yahoo’s (YHOO). How do you change that?

A: I can’t tell you! It’s how I got my job. Ho ho ho. Okay: AOL went to a network-based strategy a couple of years ago, which cut into the pricing yield, and that is now changing. We addressed this in the summer and fall. Also, AOL, shockingly, had under 1,000 customers on ad platforms when I showed up–700, actually. At Google (GOOG), we had millions. So we had a clear dialogue about what had happened. Also, the salesforce needed to be restructured, different tiers of the salesforce. And we also needed a self-service option you can use with a credit card. “Look, this is why they hired me….If we can’t make that business work, I think we have big issues.”

Q: What’s up with search?

A: We like Google and are still talking to them. We’re also talking to “other partners.” Last time, the deal was done “purely for money,” and that had benefits and some downside. This time, the pricing may be different, but it’s not the only thing that determines value.

Q: Please be more specific.

A: Okay. We’re really big on music. But if you go to AOL search for music, you get a subpar version of Google’s search for music. There are too many ads on the page. So why don’t we set up a onebox-like search box and send people to AOL music? For example, let’s think about trading search dollars for display dollars. We want to make money on ads in a much more natural and healthy way.

Q: What about investments in content?

A: Sure. We’re making nominal investments in content and a putting a lot of money in technology and infrastructure. In terms of M&A, we will sell off stuff that doesn’t make sense and do tuck-in buys.

Q: How does your local strategy differ from others?

A: We do real local, not quasi-local. We put editors in communities to actually get the stuff and monitor and update platforms. “It’s a risk, it’s a bet,” but early results are promising.

Q: Your ad business is much less profitable than that of your peers. What up?

A: Our hamburger stand says “really cheap burgers at really cheap prices,” but we’re actually serving sea bass, and we should be charging for that. We told customers, via Platform A, etc., that they could buy us really cheap. Also, cost structure: We’re taking out a third of the business. Access was making money, and things “kind of got loose” at the rest of company. But advertising can be nicely profitable with content and we can do that.

Q: Okay, but when do ad biz profits become self-sustaining?

A: Not in 2010, but sooner than five years. I own two percent of the company, and I want it to work. Morale is already better than when I got here.

Q: Are you removing all premium inventory from Ad.com?

A: Don’t believe what you read! Internet! Bad! An analyst said we might do it. What we’re going to do is “sell Superbowl product at Superbowl pricing.” [i.e., a nonanswer]

Q: What’s up with the access business and the traffic it generates?

A: We have 100 million users. Five million people get “paid services” from us. Half of those are dial-up users. But people think that 70, 80, 90 percent of traffic comes from access. That’s not the case.

Q: What’s up with mobile?

A: We want to increase consumer mobile traffic. We have lots of Apple Store downloads. We’ll do more consumer downloads/traffic. And we’ll build our mobile ad business after that, probably in 2011.

Q: What do Federal broadband access plans mean for your business?

A: All of us believe that there will be some “tail” of dial-up access for some time. But it’s not going away, and the decline is actually moderating [which makes sense--if you're still on dial-up now, what are you waiting for?]

Q: Please reiterate profitability plans for display/content/ads.

A: In reality, we’re “marginally” profitable now, but that’s not good enough.

Q: If you reprice ad business profitability, what does that mean for you?

A: I don’t want to set goals, but we’re not off by single digits. It’s significant.

Q: Talk about your communications business, please.

A: We have AIM, ICQ, email–all big opportunities. We need to clean up current products and services. Communications products “were recipient of problems” in the past. AOL tried to jam Bebo and AIM together, which didn’t work. We also slammed our stuff with way too many emails. I tried AOL email when I started and got 15 to 20 ads. Not a great user experience. It’s “project hygiene.” We also believe people want a unified platform across devices and we’re working on that.

Q: Talk about compensation.

A: I had the money options at Google, which got moved into AOL options at market value. Plus salary blah blah. I didn’t take a bonus this year “because I don’t think I should have gotten paid for laying off a third of our employees.” [All of this is discussed in the proxy, no?]

Q: Here’s a softball about your management team. How awesome is it?

A: Totally awesome. We’ll add more over time. On the engineering side, I was surprised that we weren’t chasing good engineers when we got here. “We have spent a lot of time and energy on the subject matter.” Culturally, our “internal mojo turned around,” and now the engineering community gets that we “have a big-hair problem” but that we have tons of use so things they do here have a big impact.

Q: Brand strategy: How do you extract brands people don’t know about while promoting the main site and vice versa?

A: We think about this like Disney (DIS), I think. By the way, there are two brands. The financial media brand is battered–worst merger in history, etc. But consumers like the AOL brand. Tomorrow, we’re giving AOL users a a 50 percent promotion via Target (TGT) on “very good toys.” So in the Disney way, there’s the brand people like, and we have other brands people like, just as Disney has ESPN. So we’ll have non-AOL brands launching, and we’ll refurbish the AOL brand itself.

Q: Whither MapQuest?

A: MapQuest is still Top 20 search term. It has a large market share. The technology has not been focused on in a number of years. We’re changing that. Partners are inquiring about MapQuest, and I think what we’ll do is an operational partnership with them. We feel like its a “very, very valuable property.”

Q: What are best metrics to evaluate AOL’s turnaround/growth?

A: Unique visitors [which is what everyone says now]. We need a turnaround in domestic display, which you should see in 2010. And then we need to generate cash, because that’s what healthy companies do. In terms of that cash: No more “hail Marys” where we take cash from access and make big bets on things that we don’t know about [i.e., Bebo]. We will want to fund the Web services business with cash from the Web services business.

]]> http://allthingsd.com/20091209/live-from-new-york-tim-armstrong-makes-one-last-pitch-for-aol/feed/ 0 http://allthingsd.com/20091119/aol-we-need-to-fire-2500-volunteers/ http://allthingsd.com/20091119/aol-we-need-to-fire-2500-volunteers/#comments Thu, 19 Nov 2009 13:08:15 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=13064 AOL, which has already told investors it will spend up to $200 million firing a good chunk of its staff, has now told employees. The company is looking for “up to 2,500 volunteers,” CEO Tim Armstrong told his staff today. That’s a third of AOL’s payroll.

The voluntary layoff program begins Dec. 4, a few days before the company spins off from Time Warner (TWX). If AOL doesn’t get enough volunteers, it will ax people on its own.

This is lousy news for employees, who are faced with a “jump now or wait to be pushed” decision, but it is designed to cheer investors: AOL says the cuts will drop its annual operating expenses by $300 million. Through the first nine months of this year, AOL’s operating expenses ran around $1.8 billion.

Meanwhile, AOL is looking to shed some parts of its business altogether. It has hired bankers to sell off its ICQ messaging service and is considering dumping MapQuest, among other assets.

Armstrong’s (expensive) goodwill gesture: He is giving up his 2009 bonus, which was to be at least $1.5 million. His explanation to employees: “As a member of our team and the person who takes accountability for the results of the company, I am making the decision to forego my 2009 bonus. That decision is a personal one and is not a sign for the future payout of the overall bonus plan for employees.”

Here’s the text of the company’s filing with the Securities and Exchange Commission:

On November 19, 2009, AOL Inc. (the “Company”) informed its employees of proposed restructuring activities as part of its continuing cost reduction initiatives aimed at aligning the Company’s organizational structure and costs with its strategy (the “Restructuring”). The Restructuring is conditioned upon the successful completion of the Company’s previously announced spin-off from Time Warner Inc. (the “Spin-off”), as well as the approval of the Company’s new Board of Directors that will begin service in connection with the Spin-off. It is anticipated that, if approved, the Restructuring will include the reduction of approximately a third of the Company’s current employee base, which will be conducted on a voluntary and involuntary basis. The goal of the Restructuring is to reduce ongoing annual operating costs by approximately $300 million. If the Restructuring is approved, the Company expects to incur restructuring charges of up to $200 million, substantially all of which is expected to be incurred from the date of the Spin-off through the first half of 2010.

]]> http://allthingsd.com/20091119/aol-we-need-to-fire-2500-volunteers/feed/ 0 http://allthingsd.com/20091119/aol-also-likely-to-eye-sale-of-mapquest-is-microsoft-a-possible-buyer/ http://allthingsd.com/20091119/aol-also-likely-to-eye-sale-of-mapquest-is-microsoft-a-possible-buyer/#comments Thu, 19 Nov 2009 08:23:38 +0000 Kara Swisher http://kara.allthingsd.com/?p=20834

Yesterday, BoomTown wrote about AOL’s efforts–including hiring investment bankers–to sell its ICQ instant-messaging unit.

But that’s probably not going to be the end of the shedding of assets at the online site.

In fact, according to sources inside and outside AOL, one of the next candidates for sale could be its MapQuest online map service.

Purchasers of the service that provides mapping and directions, sources said, are likely to be other mapping giants, especially Microsoft (MSFT).

But it is not clear if the software giant or anyone would fork over a huge sum of money for MapQuest.

That would include the $1.1 billion in stock that AOL paid for MapQuest in 1999.

AOL is set to spin itself off in less than a month from corporate owner Time Warner (TWX), and sources said selling off peripheral properties is part of becoming a smaller, more focused company.

MapQuest, like AOL’s Bebo social networking site, fits this description.

While it does have widespread distribution across the Web, reaching over 40 million users monthly, MapQuest lags well behind aggressive efforts being pushed by both Microsoft and Google (GOOG).

]]> http://allthingsd.com/20091119/aol-also-likely-to-eye-sale-of-mapquest-is-microsoft-a-possible-buyer/feed/ 2 http://allthingsd.com/20090716/former-aoler-jim-bankoff-scores-7-million-for-local-sports-start-up/ http://allthingsd.com/20090716/former-aoler-jim-bankoff-scores-7-million-for-local-sports-start-up/#comments Thu, 16 Jul 2009 22:51:37 +0000 Kara Swisher http://kara.allthingsd.com/?p=15897

Jim Bankoff–the well-regarded former AOL exec who runs an online sports news network called SB Nation–has nabbed $7 million in funding from investors to grow the company, including Comcast Interactive Capital, said sources.

There was also a Securities and Exchange Commission document filed on the transaction today, under the name Sportsblogs Inc., which you can see here.

The SEC filing noted that the money invested was $7.95 million. But sources said that the nearly million-dollar difference is for giving cash to early employees and founders and will not be used to fund SB Nation.

People familiar with the situation said SB Nation’s post-investment valuation, after this second round, will be $30 million and also include previous investors, such as Accel Partners and Allen & Co.

Its first round–which also included several prominent angel investors, such as former AOL exec Ted Leonsis and LinkedIn CEO Jeff Weiner–was $5 million.

SB Nation has used that investment to grow like gangbusters over the last year, especially since Bankoff arrived last fall as its chairman and CEO.

Depending on which survey service you reference, the site has between four and seven million unique visitors a month.

It has done distribution deals with Internet giants like Yahoo (YHOO) to goose that growth.

While it has been around since 2003, founded by DailyKos’s Markos Moulitsas and others, the Washington, D.C.-based start-up has been aiming more at the sweet spot of local sports pages, especially as newspapers have become weaker.

SB Nation also covers national sports, using a community network of blogs, analysis and news.

Comcast Interactive Capital, which is the venture arm of Comcast (CMCSA), will also get a board seat for David Zilberman.

Bankoff (pictured here) was a longtime AOL exec, ultimately in charge of programming and products there. He worked on such products as TMZ.com, Moviefone, MapQuest and Netscape, as well as its AIM and ICQ messaging offerings.

After he left the Time Warner (TWX) online unit, he became a senior adviser to Providence Equity Partners. Bankoff still has that role, but has been working full-time at SB Nation for a year.

]]> http://allthingsd.com/20090716/former-aoler-jim-bankoff-scores-7-million-for-local-sports-start-up/feed/ 1 http://allthingsd.com/20090226/aol-ad-head-greg-coleman-reorgs-too-its-spreading-like-the-flu-at-web-firms-today/ http://allthingsd.com/20090226/aol-ad-head-greg-coleman-reorgs-too-its-spreading-like-the-flu-at-web-firms-today/#comments Fri, 27 Feb 2009 00:58:01 +0000 Kara Swisher http://kara.allthingsd.com/?p=10475

Another Web company, another management restructuring!

Yahoo (YHOO) reorg fever struck AOL today too, as its advertising head, Greg Coleman (pictured here), moved the exec chairs around his domain at AOL’s Platform-A unit.

Coleman–who actually once was Yahoo’s sales head before taking the new gig at the Time Warner (TWX) online unit earlier this month–is replacing some execs and elevating others. Also there is some sleepy ad-serving stuff about the migration to its ADTECH system.

In related news earlier today, BoomTown reported that AOL International head Maneesh Dhir was leaving.

You must all know the drill by now, after endless reorg memos today, so here’s the entire skinny in the memo Coleman sent out (also, after the jump, is the 2009 goals memo sent today by AOL CEO Randy Falco that says, let’s be honest, next to nothing):

From: Coleman, Greg
Sent: Thu 2/26/2009 7:00 PM
To: Platform-A@platform-a.com
Subject: Unlocking Our Potential

Dear Platform-A colleagues,

When I met with you earlier this month, we talked about the big mission we’re embarking on and the vision I have for our future.

Over the past year, you’ve done great work integrating Platform-A and creating a powerful business from the ground up. Platform-A now provides marketers the most comprehensive and cost-efficient tools and technologies for the digital advertising space.

Just today, we took another big step forward with the migration of our ad inventory to ADTECH–an incredible challenge and a big win for us and our advertising partners. My thanks go out to the technologies and ADTECH teams who made this happen.

I’ve also been inspired by what I’ve heard from people throughout the organization, many of whom reached out to me during my first few weeks here to express their confidence in our ability to succeed.

Now, after a year of transition, key acquisitions and integration, we need to turn our attention to unlocking the full potential of this great business. And we need to move aggressively.

This will mean changes in how we’re organized, particularly in our ad sales functions. Over the next few weeks, I will be rolling out a multi-tiered plan that will address our infrastructure, make necessary role changes and bring in talent where needed. I want to tell you about some initial steps we’re taking today.

First, Don Kennedy will be stepping down as head of ad sales, a role I will assume on an interim basis. Don and I agreed that his many talents are best served in a different capacity, and I look forward to working with him in the coming weeks to define that role.

In addition, Mike Peralta will be leaving Platform-A. I want to thank Mike for his contributions to the business, and wish him well on his future endeavors. His team will report temporarily to Mark Ellis.

In addition to his day-to-day responsibilities, Mark will also be working closely with me as an advisor as we work through the changes ahead. Mark is a veteran in the Internet advertising space, and in the short time I’ve been here, I’ve quickly come to value Mark’s insights into the market and Platform-A. I’ve asked Don to lend his keen insights as an advisor during this process as well.

We will also be holding two days of meetings next Tuesday and Wednesday with regional ad sales executives to discuss the plan and get their input.

As we think about our growth and our future, please know that our mandate is clear. Even in this economy, we must ensure we have the best sales teams and the best tools across the country to serve our clients and grow our share of the market.

I came to Platform-A because I know this business has an incredibly bright future. And I know that working together, and working closely with our colleagues in MediaGlow and People Networks, we will realize that future.

Greg

AOL’s 2009 Goals

Dear AOL colleague,

This year marks the third of our three-year turnaround plan for AOL. Over the past two years, we’ve transformed the company and focused on three key growth businesses–MediaGlow, Platform-A and People Networks–positioning AOL to succeed over the long term.

Last year, we saw progress in each of these businesses. MediaGlow experienced sustained and healthy increases in users and engagement, proving we can grow our Web audience by creating experiences that appeal to people’s passions. Our People Networks unit embarked on a series of innovations and integrations that will set our social media experiences apart from the competition. On the advertising front, we integrated our acquisitions and made progress in other areas, although we continue to face challenges in premium display ad sales, which we are aggressively addressing.

If 2008 was about aligning our company against our core businesses, this year is about executing on our goals in what’s sure to continue to be a difficult market.

To succeed, we’ll need to continue operating as efficiently as possible, taking advantage of every available opportunity and remaining focused in a noisy marketplace. Our 2009 goals are designed to provide that focus. The goals may look familiar to you, which is a testament to the fact that our strategy over the past two years is the right one. As before, each of these goals will have specific metrics attached to them, which your business leaders and managers will be communicating in the near future.

Publishing. Over the past 18 months, we’ve reinvented our approach to programming, and as a result we’re successfully and efficiently reaching a younger and more valuable audience. This year, our new MediaGlow business unit will build on this momentum, launching 30 new edited niche sites and thousands of automatically programmed sites, creating original programming in our Los Angeles and New York studios and growing our audience worldwide, while continuing to enhance our ability to monetize our programming.

Advertising. Platform-A today offers advertisers easy access to the largest reach and the most sophisticated set of advertising tools available online, thanks to the integration last year of our seven advertising acquisitions. This year, we will build on Platform-A’s unmatched strengths to help marketers fully harness digital media to build brands and enhance online performance, worldwide.

Social Media. People Networks’ mission is to connect people with everyone and everything they care about. Last year, the group focused on integrating Bebo, AIM, ICQ, Goowy, Yedda, SocialThing!, Userplane and our other community properties, which combined reach more than 90 million worldwide. This year it will launch a series of innovations that leverage the strengths of this integration, starting this month with breakthrough updates to Bebo, and proceeding to a program to socialize the Web, updates to AIM and much more. In 2009, People Networks will create the most engaging and useful social media services available with the goal of making it simple for consumers to live their lives online.

Products & Technologies. In 2008, the Platforms team grew the Search business worldwide by more than 7% year over year and the MapQuest and Commerce & Marketplace teams showed strong profitability and feature innovation. At the same time, the global publishing and Relegence teams helped build out the systems that would become MediaGlow. The Products team focused its efforts on core products–Mail, Mobile, Desktop and Toolbars–that offered us the best opportunities for growth, while exiting dozens of underperforming ones. This year, the combined Platforms and Products teams will continue to innovate on these core products and services. The Technologies team will continue to improve our ability to launch and scale new sites and manage our data centers and network as efficiently as possible.

Access. Over the past two years, the Access team has done a remarkable job of managing this business, expanding margins, improving our ability to convert subscribers to free users and cutting costs, while maintaining the quality of the service. Access continues to be an important source of revenues and profit for the company, and this year, the team will continue to deliver in these areas.

Cost Management. Our efforts to effectively manage costs across the board have been a significant success, positioning AOL for the troubling economic times we currently face. In 2009, we will continue to look for ways to prudently manage our business and align costs with our ad-supported business. This isn’t just about cutting costs, it’s about smart resource allocation.

Living Our Values. Achieving our goals will mean nothing if we lose site of our company’s values. Living our values – integrity, collaboration, inclusiveness, outward focus, innovation – is a prerequisite to hitting our numbers. In 2009, we will continue to embody all of our company’s values and behaviors in everything we do.

You know as well as I do that this year will present us with new trials, new surprises and new opportunities. I’m confident that by working together, guided by these goals and our shared values, we’ll achieve much in 2009.

Thanks for everything you do every day to make AOL great.

Randy

]]> http://allthingsd.com/20090226/aol-ad-head-greg-coleman-reorgs-too-its-spreading-like-the-flu-at-web-firms-today/feed/ 0 http://allthingsd.com/20070919/directions-are-a-cellphone-call-away/ http://allthingsd.com/20070919/directions-are-a-cellphone-call-away/#comments Wed, 19 Sep 2007 00:01:00 +0000 Katherine Boehret http://solution.allthingsd.com/20070919/directions-are-a-cellphone-call-away/ It’s hard to remember a day when drivers set off on road trips with just a few hand-written directions and the map in the glove compartment for backup. Today, a stop at the computer is for many people almost as essential as a stop at the gas station. With a few keystrokes, anyone can print a list of turn-by-turn instructions from a Web site.

But what about when you need directions and you’re unable to get to a computer? The same companies that you look to for directions on your home PC are eager to help out on your cellphone, including Google, Yahoo and MapQuest. But while the mobile versions of these services are improving, the user interface of a cellphone isn’t ideal for inputting addresses and extracting directions. Even smart phones with larger screens and full keyboards can be hampered by slow Internet speeds.

This week I tried a service that cuts the time it takes to get directions from a cellphone. It’s called Dial DIR-ECT-IONS, and it works as it sounds: You dial the word “directions” into a cellphone (347-328-4667) and speak the address, name of business chain or event to which you need directions. Step-by-step directions are instantly sent to your phone via SMS, or text message.

This isn’t a substitute for phones that have GPS and can give real-time directions, and it may not be ideal for those who need visual cues, like turn-by-turn maps, but it is very convenient on the go and works on any basic cellphone.

The service, from a determined start-up called Dial Directions Inc., is free — except for the cost of receiving text messages on your phone. After the first 30 days of use, a one-line advertisement will start appearing at the bottom of the last text message sent per set of directions (some take multiple text messages to include all of the steps).

In many instances, I found using Dial Directions to be helpful and efficient, a welcome change from squinting to see miniature maps on cellphone screens. It’s smart enough to ask you if you know how to get to the highway, thus saving you from reading directions you already know. I tried the service with a few different cities — you don’t have to be in the city to use it because GPS isn’t involved — and valued the instant gratification of returned results with so little effort.

Dial Directions is still a work in progress. The service prides itself on superb voice-detection technology, but in one instance, it interpreted “New York City” as “Newark, N.J.,” and didn’t stop to check the accuracy of this, forcing me to hang up to restart. And the two other aspects of the service, finding business chains and events, need just a little more time to include a better variety of businesses.

The service was launched in July, but this week marks its expansion to nine metropolitan areas, including New York City, Washington, D.C., Chicago, Dallas, Denver, Los Angeles, San Francisco, San Diego and Sacramento, Calif. The service still isn’t in major cities like Boston and Philadelphia, but these cities and others will be included within the next month, in the company’s attempt to take the service nationwide.

Dial Directions also plans to add landmarks in the next month. I tried asking for directions to the White House and Yankee Stadium without any luck. General terms will also be better integrated into the service. I tried saying “movies” but Dial Directions thought I was saying “Mervin’s” one time and “Arby’s” the next. Just 40 terms, including “hotel” and “gas station,” are usable right now.

I called Dial Directions from a Motorola Razr cellphone, a Research In Motion BlackBerry Curve and an Apple iPhone. All worked well. Since SMS messages are limited to about 160 characters, regardless of your phone, none of the directions came through in just one message; most directions required from two to five text messages. Symbols help to shorten the messages, like using “L @ Maryland Ave. SW” to tell a user to turn left at Maryland Avenue Southwest.

To receive these directions, you must first tell the service what you’re looking for. The female voice representing Dial Directions is friendly and doesn’t sound stiff and robotic. She offers to give instructions on how to use the service if you don’t know how. After telling her what you’re looking for, she asks what city you’re in and where you’re trying to go.

I tried a variety of addresses and intersections; the system suggests not saying “Street” or “Avenue.” In certain instances when a highway was involved, I was asked if I knew how to get on the highway, and if I did, that extra text wasn’t included in my directions. Once I confirmed what I was looking for, the voice said directions would be on the way in a couple of text messages. Each time, they appeared on my phone almost instantly.

In the case of business chains or general terms like “hotel,” the voice told me first of the closest one it knew, asking me to confirm whether or not it had found the right place. If I said no, it suggested four more that were the next closest. This worked well in most cases, including searches for McDonald’s, Bloomingdale’s, Starbucks and pizza. However, in a hunt for the closest Dunkin’ Donuts, it couldn’t find four stores that were located a mile from my office in downtown D.C.; instead, it thought the closest one was in Arlington, Va.

The company pledges that this and other faults will be improved over the next month as its database is improved and as more users report issues that can be corrected.

Directions to local events can be retrieved as long as the event is posted on DialDirections.com. Then anyone can just say the name of the event (like “DC Shorts Film Festival”) to receive directions to that event. But this feature, too, isn’t what it should be right now. On my way to a Washington Nationals game, I couldn’t get the service to recognize the name of my event, which was frustrating.

If the company can correct some of its hit-or-miss aspects, this free service could be a big help, especially for people who don’t own smart phones. But even if you do own a smart phone, it’s faster than typing in data and waiting for a Web browser to retrieve the directions. If this service can improve its ability to find nearby businesses, this alone could be really useful.

When it knows about more locations, Dial Directions will be a great service. As it stands now, it’s helpful for directions from one address to another in certain areas. Sometimes, the most straightforward solutions really do work best.

Edited by Walter S. Mossberg

• Email mossbergsolution@wsj.com

]]> http://allthingsd.com/20070919/directions-are-a-cellphone-call-away/feed/ 0 http://allthingsd.com/20051109/the-best-way-to-get-from-here-to-there/ http://allthingsd.com/20051109/the-best-way-to-get-from-here-to-there/#comments Wed, 09 Nov 2005 00:01:00 +0000 Walter S. Mossberg http://solution.allthingsd.com/20051109/the-best-way-to-get-from-here-to-there/ Fewer and fewer drivers use traditional fold-out maps in the car. Instead, they simply print out maps and directions for where they’re heading from one of the popular mapping sites on the Web, often moments before they leave.

One such Web site, MapQuest, a subsidiary of America Online at www.MapQuest.com, has long been a favorite. Its straightforward, no-frills approach asks you to enter “start” and “end” points for your trip, and selecting “Get Directions” completes your navigational duties. Numbered instructions, a map, and an estimated total time and distance for the trip are retrieved to help you along your journey. Yahoo also built a following with a similar plain mapping site.

But, since Google entered the category with a flashy new type of mapping service earlier this year, competition in the online-mapping category has heated up. All of the big portals and search engines are looking to build their local search businesses, which they see as a golden opportunity for ad sales and other revenue. And they have come to see their mapping functions as a gateway to these local search databases, which make it easy to find businesses and services in the areas people want to map.

This week, my assistant Katie Boehret and I tested the old reliable, MapQuest, against Google Local, http://maps.google.com, and a new, enhanced version of Yahoo Maps, http://maps.yahoo.com/beta. Yahoo’s new site was just released last week, and it’s still in its “beta,” or test, phase.

As everyone who has used online mapping knows, it has its limitations. The mapping services too rarely spit out the kind of smart, speedy routes a savvy local driver would choose. Their suggested routes are generally more convoluted, and sometimes wrong. But, in most cases, they do get you where you’re going, and thus are a boon to drivers unfamiliar with the area in question.

These newer sites are free, like MapQuest, but they offer some fancy features, like the ability to pan across a map simply by moving your mouse’s cursor, or zooming in or out on a location quickly. Google adds satellite photos of the actual locations, down to the trees in your front yard.

MapQuest looks a little dowdy by comparison to the newcomers, but it works for a lot of folks because it gets people from point A to point B, without any extra fuss. So, we tested these new features from Google and Yahoo to see if they were actually useful, or just a lot of hype that muddied up the direction-retrieval process.

Overall, we concluded that, for the sake of getting where you’re going with the most-thorough directions, MapQuest still does the best job, with the most accurate directions. But Yahoo has a multipoint routing feature that’s valuable. And, for some, the ability to quickly pan a geographic region on Yahoo and Google — with satellite photos on the latter — can familiarize them with the surrounding area and make the drive easier.

Last weekend, Katie traveled a little more than three hours from Washington, D.C., to Bethany Beach, Del., and used three sets of directions from MapQuest, Google Local and Yahoo Maps. MapQuest’s time estimate of two hours and 45 minutes was too optimistic, but Google and Yahoo each estimated three hours and 12 minutes, which was just about right.

Though different trips might have different results, Katie noticed that in more than one case Yahoo and Google each suggested taking smaller, less popular roads instead of staying on the state routes as MapQuest suggested. Katie went with MapQuest instead to avoid reading more street signs — especially at night in rural areas.

Google Local boasts three views of each map. Hybrid — a satellite view with labeled streets — is shown here.

She also noticed that Google more often referred to labeled routes by their ever-changing street names instead of route numbers or the main name of the highway. For example, three separate directions from Google involving Market Street, South Main Street and Seashore Highway were all summed up on MapQuest as MD-404/Seashore Highway, saving time and confusion. Yahoo’s directions were unnecessarily complicated and detailed.

The printouts from each site also made a difference. MapQuest uses capitalized letters for street names and directions, such as, “Turn RIGHT onto OCEAN VIEW PKWY,” and prints the mileage for each line of directions aligned on the right side of the page, making it easy to find how far you must travel for each step. The mileage estimates on Yahoo and Google were only distinguished with bold type at the end of each sentence of directions. These were harder to find, especially in a tense situation, Katie found out.

While I didn’t run a new test for this column, I have tried all three services in the past year, and found MapQuest the most reliable. In fact, in one case this summer, Google led me totally astray, omitting a key turn.

And, just the other day, I encountered another example of a lapse in Google’s maps. After reading that Britain’s Prince Charles had worshipped at a small church in the little California town of Inverness, I decided to see where Inverness was. I did a regular Google search, which produced links to all three services. MapQuest and Yahoo quickly showed a map with Inverness clearly marked. To my amazement, Google’s map didn’t show the town’s name at all, even though it showed the region it was in, and could zoom down to the town’s street map.

Yahoo Maps offers useful multi-point routing and a mini map view for easier panning of large areas.

Google starts you out in familiar territory — the box in which you enter a location, business or directional instructions looks just like the regular Google search box. By default, the entered data searches a map of the United States. If you’d rather select the “Search Businesses” option on the right, you can enter the appropriate “what” (Chinese food) and “where” (Washington, D.C.).

A third option on the right, “Get Directions,” brings up two boxes for the start and end addresses. Here, in between the two boxes, is a simple set of switch arrows; you can easily click those arrows and save time getting a reverse route (also offered at MapQuest and Yahoo) or move the destination address over to be the next starting point. But Google Local doesn’t offer multipoint routing; currently you can only map out a route with one destination point at a time.

Google Local’s most unusual features are its map views — including satellite and hybrid images of the streets. Satellite views are photos of the location taken by actual satellites; hybrid images are the same satellite views of the streets with typed labels, like regular maps. These satellite views are fun to see, but for the most part, don’t help all that much when you’re driving.

Yahoo’s multipoint routing is a serious strong point for the new site. It allows you to map a route to multiple, succeeding destinations. To enter more than one destination on Google Local or MapQuest, you have to restart your direction search, retrieving a different map for each leg, which is time-consuming and frustrating.

Yahoo always offers a blank destination box succeeding your last entered destination. All entered locations are listed to the left of each map, up to 26 in all. Each destination is designated by a letter of the alphabet, clearly marked on the map to the right, while the multipoint directions appear almost instantly on the left, with the same letters and destination names inserted in the appropriate spots.

Another smart feature that Yahoo uses is its mini map — a collapsible map in the top right corner of each larger map that uses a gray box to highlight the focus area. You can drag this gray box around within the mini map, which saves you from panning all over the larger map. Google doesn’t offer such an option.

All three mapping services offer to find businesses and restaurants near your locations, but Google and Yahoo use their already established search engines to offer more information about those locations. Yahoo incorporates Yahoo Local, its online community of users, to list data such as restaurant ratings, making the experience a little more informative.

Google lacks a handy feature of MapQuest and Yahoo — the ability to manually save a list of often-used destinations so you can call them up quickly again.

Google and Yahoo don’t show any ads on their sites, nor do they print out ads on their printed directions. MapQuest’s site has ads, and it prints one ad out with each set of directions.

If you’re satisfied with the MapQuest experience, stick with its smart printouts and accurate directions. Yahoo’s multipoint feature might come in handy for errand-filled Saturdays, and panning around your area on Yahoo or Google is helpful, in terms of getting a better overall sense of where you are. But these two new sites need to offer better directions and better print-outs before we’ll give up on MapQuest.

With reporting by Katherine Boehret

• Email me at mossberg@wsj.com

]]> http://allthingsd.com/20051109/the-best-way-to-get-from-here-to-there/feed/ 0