AOL to acquire tech blog TechCrunch websites
29 Sep 2010
US-based Internet pioneer AOL Inc said yesterday that it will finally add another reputed blog to its stable by acquiring technology blog TechCrunch and its network of websites to further its strategy to become the global leader in news production.
As correctly reported yesterday by GigaOm, a Web 2.0 blog started by Om Malik, AOL's CEO Tim Armstrong and TechCrunch founder Michael Arrington announced the merger late last night at TechCrunch's Disrupt conference in San Francisco. (See: AOL calls on technology blog TechCrunch for merger once again)
Although both AOL and TechCrunch did not reveal the financial terms of the deal, the US media has estimated the price tag at around $25 million.
But industry experts have rubbished the claim since TechCrunch's 2009 income was $10 million and accordingly $25 million would only be only 2.5 times its revenue compared to the industry standard of around six times for acquiring an internet company.
Silicon Valley-based TechCrunch is a widely respected technology blog that provides technology news and analysis, as well as profiles start-up companies, products and websites.
It was founded in 2005 by serial entrepreneur and lawyer Arrington and the blog has gained a reputation of breaking news in the technology sector.