Whatever you think of AOL‘s strategy and the Huffington Post deal, CEO Tim Armstrong clearly wants to buy premium content properties. First TechCrunch for a rumoured $30 million, now the Huffington Post for an eye-popping $315 million.
What’s interesting here is an underreported fact of AOL’s last earnings: AOL finished 2010 with $720 million in cash, most of it from asset sales. That’s a far cry from just 13 months ago when Tim Armstrong tried to buy Associated Content and couldn’t match Yahoo’s $130 million.
Of the $315 million AOL is spending on Huffington Post, $300 million is in cash. In other words, AOL now has enough cash left over to buy another company the size of Huffington Post, AND four companies the size of TechCrunch. And that’s not counting stock and debt AOL can also conceivably use for acquisitions.
Just something to think about.
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