AfterDawn: News

TechCrunch acquired by AOL

AOL CEO Tim Armstrong has confirmed today they have acquired the very popular technology blog TechCrunch.

TechCrunch was founded in 2005 by Michael Arrington.



GigaOM, a rival tech blog, first broke the news yesterday that a deal was in the works.

At TechCrunch’s Disrupt conference, Arrington and Armstrong signed the actual contract on stage, in front of a full audience.

AOL's only condition is that Arrington stay as part of the site until 2013, at least.

The reported price for the acquisition is $25 million, even though the site reportedly brings in $10 million per year.

Written by: Andre Yoskowitz @ 28 Sep 2010 15:38

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• 11 comments

• Pop_Smith

  If TechCrunch brings in $10M/year in revenues selling it for a one-time payment of $25M doesn't seem like a very smart move on Michael Arrington's part.
  
  Maybe he is getting more out of this than is mentioned in the article?

  28.9.2010 15:48 #1

• DXR88

  in other news Afterdawn buys Aol.

  28.9.2010 16:13 #2

• biglo30

  Wow didnt no people still used AOL.

  28.9.2010 16:46 #3

• Pop_Smith

  Originally posted by biglo30: Wow didnt no people still used AOL. AOL, as an ISP, is long gone. They do, however, own a ton of websites like TechCrunch that probably generate them tens to hundreds of millions every year.

  28.9.2010 16:58 #4

• DVDBack23

  Originally posted by Pop_Smith: Originally posted by biglo30: Wow didnt no people still used AOL. AOL, as an ISP, is long gone. They do, however, own a ton of websites like TechCrunch that probably generate them tens to hundreds of millions every year. Exactly, they are still one of the largest portals in the U.S. (And they do actually still have some dialup customers).
  
  As for Arrington's choice to take the $25 million, I think it has to do with the fact that he started the site with no venture capital, so the payout is pretty much all his.
  

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  28.9.2010 17:29 #5

• solamf30

  Originally posted by DVDBack23: Originally posted by Pop_Smith: Originally posted by biglo30: Wow didnt no people still used AOL. AOL, as an ISP, is long gone. They do, however, own a ton of websites like TechCrunch that probably generate them tens to hundreds of millions every year. Exactly, they are still one of the largest portals in the U.S. (And they do actually still have some dialup customers).
  
  As for Arrington's choice to take the $25 million, I think it has to do with the fact that he started the site with no venture capital, so the payout is pretty much all his. Not to mention the fact that I'm sure he will get a hefty salary the remaining time he is there

  28.9.2010 17:49 #6

• davidike

  rss feed deleted then.
  

  "The public domain is a dicgrace to the forces of evil"
  
  http://www.youtube.com/watch?v=CJn_jC4FNDo

  28.9.2010 19:11 #7

• KillerBug

  Originally posted by Pop_Smith: Originally posted by biglo30: Wow didnt no people still used AOL. AOL, as an ISP, is long gone. They do, however, own a ton of websites like TechCrunch that probably generate them tens to hundreds of millions every year. I think AOL (dial-up) still exists in some places...and you practically need a court order to shut it off, so a lot of unknowing people are probably still paying them money for some crummy dial-up from 1995.

  28.9.2010 22:34 #8

• Pop_Smith

  Originally posted by KillerBug: I think AOL (dial-up) still exists in some places...and you practically need a court order to shut it off, so a lot of unknowing people are probably still paying them money for some crummy dial-up from 1995. DVDBack23 also pointed this out to me. I haven't seen or heard anything about AOL as an ISP for a long time so I thought they were totally gone as an ISP.
  
  Sounds like the same crap AT&T pulled were older people were (and, possibly, still are) paying monthly rental-like fees for a landline phone.
  

  http://www.megavideo.com/?v=V1VZAD0O <-- Brian Regan "Take Luck" video.
  
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  29.9.2010 00:50 #9

• shaffaaf

  they own engadget and joystiq aswell. A pretty powerful force in the tech/games news industry.
  

  
  
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  29.9.2010 08:26 #10

• davidike

  Originally posted by shaffaaf: they own engadget and joystiq aswell. A pretty powerful force in the tech/games news industry. a very strong lobby group for increasing sales, the question to ask is how impartial are they with their corporate advertisers in the tech, gaming industry regarding reviews and promotion?
  
  
  

  "The public domain is a dicgrace to the forces of evil"
  
  http://www.youtube.com/watch?v=CJn_jC4FNDo

  29.9.2010 16:37 #11