AOL will buy Arianna Huffington’s influential website for $315 million (€232 million), looking to the high-profile liberal pundit to rescue it from the dustbin of internet history.

The move comes at a hefty premium. AOL is estimated to pay 32 times earnings before interest, taxes, depreciation and amortization for the Huffington Post, said Benchmark analyst Clayton Moran.

Similar content deals, such as Hellman & Friedman’s acquisition of Internet Brands in September 2010, typically go for eight to 12 times earnings, said Mr Moran.

“AOL just spent 40 per cent of their cash for very little near-term return,” he said.

The deal, which sent AOL shares up slightly after they fell as much as 4 per cent in morning trade yesterday, will create a media group that will have a combined base of 117 million visitors a month in the United States, and reach 270 million people globally, AOL said in a statement.

Arianna Huffington, co-founder of the Huffington Post, will lead a newly formed Huffington Post Media Group, which will integrate all Huffington Post and AOL content, as its president and editor-in-chief.

The deal is the latest move by AOL chief executive Tim Armstrong to rescue the dial-up internet access business by turning it into a media and entertainment destination.

The Huffington Post, started in 2005, has grown into one of the most heavily visited news websites in the United States. – (Reuters)