As The New York Times reported on Monday, AOL will pay $315 million for the site, with $300 million of that in cash.
That amounts to roughly five times the site’s estimated revenue for 2010 of about $60 million, according to The Times. (The Huffington Post’s revenue for last year nearly doubled from 2009, and the company’s executives insisted that the site turned a profit for the first time.)
That will mean a healthy payday for investors and holders of the company’s stock and options. Those equity holders will benefit earlier than if The Huffington Post had waited for an initial public offering. So who is invested in The Huffington Post? Ms. Huffington and Mr. Lerer founded the site in 2005 with about $2 million in seed capital, according to Advertising Age.
The site subsequently raised money from several investors, including:
Alan Patricof’s Greycroft Partners
Oak Investment Partners (which kicked in $25 million in late 2008) and, fittingly, Robert W. Pittman, the former AOL executive