AOL buys TechCrunch

By Stacy Cowley, tech editor


SAN FRANCISCO (CNNMoney.com) -- TechCrunch said Tuesday it has agreed to be acquired by AOL, a deal that came together quickly after rumors of the negotiations leaked.

"This wasn't supposed to happen today -- this was supposed to happen later," TechCrunch founder Michael Arrington said from the stage at TechCrunch's Disrupt conference. "So we had to rush through this."

Financial terms of the deal were not disclosed. AOL CEO Tim Armstrong joined Arrington onstage to sign the acquisition papers in front of the conference audience. Arrington polled the crowd on whether or not he should sign. "Absolutely not!" beat "yay" by about a 60/40 split.

Arrington signed anyway.

TechCrunch, which launched in 2005 and quickly became one of Silicon Valley's most influential news outlets, operates a network of tech-focused blogs. Audience traffic tracker Compete.com estimates the TechCrunch network generates more than 2 million visitors each month.

AOL (AOL) already has a foot in the tech blog world with Engadget, the popular hardware enthusiast site it picked up in its 2005 purchase of blog network Weblogs Inc.

While many Weblogs sites folded in the wake of that deal, the survivors include some high-profile successes like TVSquad, Autoblog and The Unofficial Apple Weblog.

These blogs help anchor a fast-growing AOL blog network whose marquee sites include DailyFinance, WalletPop, Luxist and SlashFood. (DailyFinance and WalletPop are CNNMoney.com partners.)

AOL's highest profile -- and most expensive -- initiative is Patch, a hyperlocal blog network that currently has more than 100 sites chronicling communities across the U.S. AOL says it is investing $50 million to rapidly expand Patch, which aims to cover 500 places by early 2011.

Like Yahoo, AOL is trying to develop a vast content reservoir while walking the fine line between mass and class. Its Seed system for buying and distributing content mimics the model eHow creator Demand Media popularized: Pay freelancers rock-bottom rates to churn out a flood of dashed-off content optimized to rank highly in search engines. Demand filed for an IPO last month.

But AOL and Yahoo (YHOO, Fortune 500) -- which in May acquired Demand rival Associated Content -- have recently made moves aimed at boosting their content quality. Each has poached star journalists from outlets such as the New York Times, Washington Post, BusinessWeek and Politico to build sites focused on breaking news and investigative reporting. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Sponsors

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.