Silicon Valley Watcher - Former FT journalist Tom Foremski reporting from the intersection of technology and media

Will TechCrunch $hare M&A Bounty With Its Writers? Will Yahoo! Look At Competitors?

Posted by Tom Foremski - September 28, 2010

Congratulations to Michael Arrington and team on the TechCrunch acquisition by AOL. The terms of the deal have not been made public, however AOL will be required to make an SEC filing in the next few days if the amount is "material."

Building a media company is hard work and Mr. Arrington has certainly put in the hours. The TechCrunch editorial team is now quite large and it is that teams' work over the past couple of years that has built the traffic that AOL wants.

It will be interesting to see how much, if at all, TechCrunch owners will share their bounty with their reporters. After all, without the writers there isn't a TechCrunch.

But online reporters are a dime a dozen in today's troubled media industry, salaries are small and there is likely little incentive to offer a share of any M&A windfalls.

The acquisition also means that AOL passed on competing TechCrunch sites such as Mashable, VentureBeat, GigaOm, and ReadWriteWeb. Those sites will now face a competitor that has a more formidable distribution network and advertising sales team.

Will the deal attract others? Will Yahoo, for example now come and pick through the TechCrunch competitors? Will Mashable be next? It is certainly closest to TechCrunch in traffic.

Here is a chart that provides a relative measure of the value of these media sites:
(Compete usually underestimates traffic.)

Please see: Tim Armstrong: We Got TechCrunch!

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