AOL Acquires TechCrunch
September 28, 2010
(ChattahBox Business News) – TechCrunch said Tuesday it has agreed to be acquired by AOL. The struggling Internet service provider will pay from $25 million to $40 million for the blog that has gained a strong following in the Silicon Valley. TechCrunch, which launched in 2005 is run by outspoken boss Michael Arrington, who will remain for the time being, and says the blog will retain its independence. AOL tried to buy TechCrunch two years ago, but they could not agree on price.AOL already owns Weblogs Inc., which publishes the gadget blog Engagdet the popular hardware enthusiast site, among other titles. In a press release posted on TechCrunch, AOL Chairman and Chief Executive Tim Armstrong said: “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.”
AOL also bought Thing Labs Inc., which makes Web-based social-networking software, and 5Min, a syndication middleman that collects third-party videos and distributes them to content-hungry websites. 5Min’s distribution network includes 800 websites and it serves 130 million unique video streams a month, according to ComScore. The 5min acquisition for close to $65 million, “provides a missing piece in the AOL value chain that completes our end-to-end video offering from content creation through syndication and distribution to the consumer experience and monetization,” Armstrong said. The acquisitions seem to show that AOL which has recently hired hundreds of writers to create more original news content, is committing to ad-supported Web media content.