In light of its declining dial-up internet business, AOL has taken a further step towards focusing on editorial content with its acquisition of popular news and blog site, The Huffington Post.
AOL has been shrinking recently. The company shed approximately 2,500 jobs last year, equivalent to a third of its workforce. Revenues for the fourth quarter fell 26%, and advertising revenue was down 29% year on year.
The Huffington Post, which had its first profitable year in 2010, is expected to generate around $60 million this year, predominantly from online advertising.
AOL now intends to focus on editorial content, alongside which it can sell local and display advertising. The company already owns influential technology blogs Engadget and TechCrunch and the Huffington Post already had 25 million regular viewers.
With the acquisition, AOL has the potential to reach around 100 million across the US.
Meanwhile Yahoo is also focusing more on content. The internet company plans to announce a publishing platform that would allow users to receive personalised content on their mobile devices.
As more news and social media streams populate the internet, an increasing number of websites and mobile applications are seeking to help users find the news that is relevant to them.
Yahoo is expected to make the announcement at the Mobile World Congress in Barcelona later this month.
