Tim Armstrong Says AOL's HuffPo Is Worth a Lot, Just Not How Much

NEW YORK ( TheStreet) -- AOL (AOL) CEO Tim Armstrong wouldn't take the bait from Business Insider's Henry Blodget to put a round number on revenue at Huffington Post but he did intimate that the news and video operation is worth a lot more than the valuations given recently to some of the Internet's new hot media operations. 

"Huffington Post is doing great," Armstrong said, explaining that if the "international investments" were stripped out, the company would be doing even. The AOL CEO did say that HuffPo generates "hundreds of millions" in sales, and when Blodget threw out the number of $200 million, Armstrong didn't flinch. 

As for valuations of newfangled media companies, it's likely Armstrong was referring to Vox Media, which recently secured private equity funding of $46.5 million, giving the owner of TheVerge, SBNation and Eater a ballpark valuation of $400 million. Buzzfeed, the news and listicles sites, received a $50 million investment, boosting its value to more than $800 million. 

Armstrong argued that HuffingtonPost has an international brand, the "first global media brand," producing hundreds of videos while becoming a "major news source" in many countries, making its valuation a "magnitude" greater than its rivals in New Media. 

"There's no way we could rebuild the HuffingtonPost now for even a multiple of what we bought it for," Armstrong said. AOL paid $315 million for the site in February 2011. The stock dropped 3.4% the day the deal was announced. Shares have risen 118% since then.

Written by Leon Lazaroff in New York

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