AOL Acquiring Huffington Post

AOL is reportedly paying $315 Million for the Huffington Post with most of the payment in cash.  Must be some former Time Warner shareholders who remember how it worked out for them to take stock.  The strategy is to bring content to AOL’s pipeline.  Sound familiar?  Huffington currently has revenues of around $50 Million – so this represents a purchase price of 6.3 X REVENUE, not EBITDA!    Assuming they can generate a 20% EBITDA return this means to me AOL needs to grow the revenues by fivefold to $250 Million with a $50 Million EBITDA in order to generate a 15% return on their investment.  Seems like a tall order to me, especially in this highly competitive and fickle market.  Looks like a great deal for Arianna Huffington.  I’d be interested in what others think about this deal.