With 900 layoffs, AOL is also recruiting new big names for Huffpo to help it challenge Facebook, Google . . . and Twitter?
Stone will keep his job at Twitter and will work across the Huffington Post Media Group and the rest of AOL's assets, the Guardian reported.
AOL said Stone would be working to develop a platform to help people share their work in their local community. He will also create a video series about people and companies at the "forefront of philanthropy and corporate responsibility".
The news comes days after AOL announced it will cut 900 jobs, 20% of its workforce, in the US and India as it slugs it out for advertising with Google and Facebook .
Last month AOL reported a 26% drop in revenue as its dial-up internet business continued to go down. Ad sales have not made up the difference. Advertising revenue fell 29% in the last reported quarter compared to a 30% rise at Google.
Chief executive Tim Armstrong said 2011 would be "the year we stop working on the turnaround and start working on the comeback".
Armstrong's strategy is to concentrate on content, hence the February deal with the Huffington Post. Founder Arianna Huffington now heads all AOL's editorial operations and is recruiting big names. Former New York Times and Los Angeles Times editor John Montorio will be culture and entertainment editor, and Howard Fineman, a former analyst for NBC and MSNBC, will become editorial director of the group.
Stone said: "The definition of success is changing as we begin to understand the value of helping others. Arianna and Tim share my vision for aligning corporate resources toward meaningful change." He said his goal in teaming up with AOL was to "rally companies to think about new ways of doing business, share best practices, and strive for positive impact at all levels – from global to local."
Huffington said: "Since one of our key goals is to explore and spotlight innovative ways that our company – as well as others – can do good, I'm thrilled that Biz Stone will be our strategic partner in this important endeavour."