Updated from 4:43 a.m EST

NEW YORK ( TheStreet) -- AOL ( AOL) said Monday it agreed to acquire Web site The Huffington Post for $315 million.

As part of the deal, 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 integrate all Huffington Post and AOL content.

AOL said about $300 million of the transaction price will be funded from cash on hand.

The boards of both companies have approved the transaction, as have The Huffington Post's shareholders. The transaction is expected to close in the late first quarter or early second quarter.

The price that AOL is paying is "really just the hiring fee to get Arianna," technology analyst Rob Enderle told the Associated Press. "This is one of those out-of-left-field moves that actually makes a lot of sense. This could put AOL back on the map."

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, according to a press release from the two companies.

The Huffington Post is a top 10 Web site for current events and global news.

Arianna Huffington and AOL CEO Tim Armstrong reportedly signed the deal during the Super Bowl Sunday in Dallas.

-- Written by Joseph Woelfel

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