Global news site Huffington Post is now generating “hundreds of millions” of dollars of revenue, AOL CEO Tim Armstrong said at Business Insider’s “IGNITION: Future of Digital” conference this afternoon.
Given the amount of scepticism directed at Huffpo in its early days — and at Armstrong when AOL bought Huffpo for $US300 million in 2011 — this performance is sweet vindication.
(Armstrong reminded everyone how, when he announced the Huffpo deal, AOL stock instantly dropped.)
At recent digital media valuations, “hundreds of millions” of revenue would give Huffpo an impressive valuation.
Vox Media just closed a recent financing at close to a $US400 million valuation, or about 7X this year’s estimated revenue.
At even 6-times this year’s revenue, revenue of, say, $US200 million would Huffington Post worth north of $US1 billion.
Huffington Post’s US business is nicely profitable, Armstrong also said. Overall, the company is investing aggressively in international editions and is on its way to becoming a truly global news brand.
Disclosure: I run a digital media company, so I certainly wasn’t unhappy to hear this!
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