America Online commonly known as AOL was the first company through which many Americans were introduced to the internet. But lately, AOL lost its touch and the company remained out of the spotlight for quite some time now.
However on Tuesday, AOL Inc went on a buying spree announcing three major buys and acquisitions, according to many analysts these buying shows that AOL is again trying to redefine itself as a demanding hub for articles on various topics and internet videos.
AOLs recent acquisitions clearly indicates that the company is frantically trying to revamp its business model and trying to put on a whole new different face amongst an era of competition.
AOLs latest acquisitions includes the deals to buy the TechCrunch Online Blog, an Online Video Company names as 5min Media and another company with the name of Things Lab Inc which is Web-based software company.
AOL is continuously investing in its new business strategy but all those game changing tactics haven’t seemed to work out lately for the company and the business hasn’t moved much. Greater than 40% income of AOL comes from its sale of dial-up connections and subscription products related to its dial-up internet packages.
AOL Chief Executive, Tim Armstrong said in an interview that the company’s efforts to revamp itself will take considerable amount of time and these deals will help the company to consolidate itself once again. TechCrunch is a prominent tech blog with more than 3.8 Million monthly visitors. According to ComScore, a marketing research firm, TechCrunch rakes in almost $10 Million a year and is indeed one of the most visited Tech Blogs in the US and Europe. AOL also bought 5min Media which is an online Video site and it contains mostly instructional videos like those for cooking tips and health tips.
According to price tag, these AOL buys has cost the company almost $ 100 million. AOL has disbursed approximately an amount of $30 Million for TechCrunch and $65 Million for 5min. The third acquisition has cost AOL a very nominal amount; AOL has bought Things Lab which is the creator of Brizzly, an online application which enables the users to update their Facebook and Twitter pages.
Right now, AOL is a company which is in turmoil, yet alone in the second quarter of the present year its revenue plunged almost by 26% which is considerably higher. Moreover, in a recent study by ComScore, the unique daily visitors to AOL sites also reduced by almost 3%.