AOL confirms acquisition of TechCrunch, price as low as $30m say reports
UPDATED 0900 – AOL has confirmed it is to buy TechCrunch, following earlier reports, for what is said to be between $25m and $30m although there is no confirmation of the sale price.
According to Reuters AOL has paid $30m for the technology news site with an earlier report on the San Francisco Chronicle website saying AOL told insiders that it is “only paying $25m for TechCrunch.
The $25m to $30m price range is a lower one than some had predicted founder Michael Arrington might get for the company he founded five years ago.
The Chronicle says that if the figure is correct then it “would be a surprisingly low” one considering Arrington recently put TechCrunch revenues at “nearly $10m”.
AOL said it would add TechCrunch to its tech-oriented group of sites, which includes Engadget, Switched, unofficial Apple weblog TUAW and DownloadSquad among others.
With its millions of pageviews and highly shared content, TechCrunch will certainly add a powerful punch to AOL CEO Tim Armstrong’s plans to reshape the internet firm as a content business.
“We are still investing in content areas and … adding more content brands to our portfolio,” said Armstrong.
The sale came after Arrington first hinted that he wanted to sell the site back in June.
Press Release – AOL TO ACQUIRE TECHCRUNCH NETWORK OF SITES
Leading Authority on Tech News Will Expand AOL’s Growing Offering of World-Class, Audience-Relevant Content
San Francisco, CA, September 28, 2010 – AOL Inc. [NYSE: AOL] today announced that it has agreed to acquire TechCrunch, Inc., the company that owns and operates TechCrunch and its network of websites dedicated to technology news, information and analysis. TechCrunch and its associated properties and conferences will join the AOL Technology Network while retaining their editorial independence, further bolstering AOL’s position as one of the world’s leading providers of high-quality, tech-oriented content. The announcement will be made on stage at TechCrunch Disrupt in San Francisco, CA.
Founded by Michael Arrington, TechCrunch operates a global network of dedicated properties from Europe to Japan, as well as vertically-oriented websites, including MobileCrunch, CrunchGear, TechCrunchIT, GreenTech, TechCrunchTV and CrunchBase. The TechMeme Leaderboard ranks TechCrunch as the No. 1 source of breaking tech news online, followed by AOL’s Engadget.*
“Michael and his colleagues have made the TechCrunch network a byword for breaking tech news and insight into the innovative world of start-ups, and their reputation for top-class journalism precisely matches AOL’s commitment to delivering the expert content critical to this audience,” said Tim Armstrong, Chairman and Chief Executive Officer of AOL. “TechCrunch and its team will be an outstanding addition to the high-quality content on the AOL Technology Network, which is now a must-buy for advertisers seeking to associate their brands with leading technology content and its audience.”
Heather Harde, Chief Executive Officer of TechCrunch, said: “TechCrunch and AOL share a motivating passion for quality technology news and information, and we’re delighted about becoming part of the AOL family. This represents a compelling opportunity to extend the TechCrunch brand while complementing the great work of sites like Engadget and Switched. Our contributors, and our audiences, can look to the future with excitement about what we can build when we have the significant resources of AOL behind us.”
Michael Arrington, Founder and Co-Editor of TechCrunch, said: “Tim Armstrong and his team have an exciting vision for the future of AOL as a global leader in creating and delivering world-class content to consumers, be it through original content creation, partnerships or acquisitions. I look forward to working with everyone at AOL as we build on our reputation for independent tech journalism and continue to set the agenda for insight, reviews and collaborative discussion about the future of the technology industry.”
TechCrunch also hosts industry-leading conferences and events, including The Disrupt series, The Crunchies Awards and various meet-ups worldwide. These conferences bring together industry innovators, entrepreneurs and financing sources to exchange ideas, forge new relationships and discuss the current and future industry trends.
“Engagement with thought leaders is as important to AOL as our engagement with our contributors, audiences, publishers and advertisers, and TechCrunch’s conferences and websites will give us a promising, additional springboard to join and amplify these conversations. We’re committed to quality in everything we do at AOL, and look forward to working with Heather, Michael and the TechCrunch team to extend the brand,” said David Eun, President of AOL Media and Studios.
The AOL Technology Network consists of AOL’s tech-oriented properties including Engadget, the Web magazine about everything new in gadgets and consumer electronics; Switched, which covers the intersection of the digital world with entertainment, sports, art, fashion and lifestyle; TUAW, the unofficial Apple weblog; and DownloadSquad, the weblog about downloadable software and other computer subjects. The AOL Technology Network ranks in the top five for tech news according to comScore Media Metrix, August 2010 data, and leads the top five in average time spent and average visits per user.
This acquisition will further AOL’s strategy to become the global leader in sourcing, creating, producing and delivering high-quality, trusted, original content to consumers. TechCrunch will remain headquartered in San Francisco, CA, as a wholly owned AOL unit. Deal terms were not disclosed.
All Comments
maybe the revenues are not actually $10m…
[...] podało kilka zachodnich serwisów technologicznych TechCrunch został dziś sprzedany korporacji AOL. Za serwis zapłacono [...]
[...] This post was mentioned on Twitter by BrandRepublic, All Brand Media, Anna Gawan, María José Sandoval , BrandRepublic and others. BrandRepublic said: AOL confirms acquisition of TechCrunch, price as low as $25m say reports: AOL has confirmed it is to buy TechCrunc… http://bit.ly/9ElKfm [...]
[...] sold before although its $100m plus valuation might put some off. Then again maybe not considering AOL paid $30m for Techcrunch and Yahoo paid as much as $100m for Associated [...]
[...] are many bloggers which is why just the other week AOL paid $30m for technology news blog Techcrunch. And why the Huffington Post is making cash and is chasing the New York Times for traffic. Not [...]
[...] which is pushing heavily on the blog (with acquisitions like TechCrunch) and hyperlocal front, is taking a risk here as like Yahoo! it still does not have a response to [...]
[...] deal didn’t happen, but it is exactly the kind of site that AOL, which recently added Techcrunch to its portfolio of blogs, would also have an interest in [...]
[...] is pushing forward its content strategy with the launch of an iPad only magazine called [...]
[...] That buy had been sign posted, but this one is a surprise. To put this deal into some scale. Techrunch is a considerable deal in the world of blogs, but AOL bought that for around $30m. The Huffington Post, costing more than ten times that, is in another [...]
[...] year Techcrunch founder Michael Arrington sold his tech news business to AOL for around $30, according to reports. Things went a bit rocky and very early on people were wondering how long he would last at AOL as he [...]
[...] It is being reported that CNN is in late stage talks to acquire social news and technology website Mashable for as much as $200m. If true it will be one of the last big independent blogs to be snapped up by a larger media owner. AOL bought the Huffington Post for $315m last year and in 2010 it also snapped up TechCrunch for around $30m. [...]