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Tim Armstrong: We Got TechCrunch

251 points| ssclafani | 15 years ago |techcrunch.com | reply

135 comments

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[+] aresant|15 years ago|reply
Wonder who's going to scoop the TechCrunch buy out price, since that's usually TechCrunch's job.
[+] alain94040|15 years ago|reply
There clearly is some kind of earn-out, meaning that the founders get the whole money only if they stay long enough and/or if the business remains healthy. On stage, Mike Arrington mentioned that he'd stay for sure on board for 3 years, due to "incentives." So it's possible that the sale price is $25M upfront, with another $25M in 3 years. That would make both sources (one that says the price was only $25M, and one that says it was in the $40 or $50M) correct.
[+] RealGeek|15 years ago|reply
May be Venture Beat? or GigaOM
[+] kevinholesh|15 years ago|reply
Though I disagree with Arrington quite often, congratulations on the acquisition. He worked his ass off to build TechCrunch to where it is today.
[+] bond|15 years ago|reply
So we were right to suspect the move to Seattle was tax based...
[+] _delirium|15 years ago|reply
Wonder what this'll do for his first-hand reporting on Silicon Valley. If you've moved out of a state for tax reasons, you generally have to be physically absent from the state the majority of the time--- you can't "move" but still live there 11 out of 12 months. (For California, you also have to stay moved for at least 4 years, or else your sub-4-year move might be deemed merely a temporary absence with intent to return.)
[+] flyosity|15 years ago|reply
He'll be making capital gains money, not income, so this move will not help him. (I had the same thought re: the move but was corrected on Twitter by a friend who sold his startup - Newsvine - and lives in Seattle.)
[+] vgurgov|15 years ago|reply
am I the only one who thinks that IF its really the case, its kinda ... unfair. cmn, MA is good writer and he 100% deserves his money but he made it writing about SV! I think CA certainly deserve its 10,3% back, hey?
[+] tlrobinson|15 years ago|reply
I'm sure CA's tax board will be looking into his claim of WA residence...
[+] vaksel|15 years ago|reply
it's kinda funny....Techcrunch makes it a point that they don't accept press releases...and they announce their acquisition with a press release.
[+] rewind|15 years ago|reply
I read it more as Tim saying "this is now our company and I'm letting you know", so any previous rules are already out the window ;-)
[+] djacobs|15 years ago|reply
He doesn't even mark up the press release with semantics. Not even header tags for subheadings. What is this?
[+] davidmurphy|15 years ago|reply
Arrington handed Armstrong his laptop on stage and had Tim press the "publish" button. Armstrong didn't write the post, let alone even read it before he hit publish, it seems. I think it was done by Techcrunch. Watch the video and you'll see.
[+] kloncks|15 years ago|reply
Best comment from TechCrunch:

"Shouldn't Techcrunch be acquiring AOL?"

[+] pedalpete|15 years ago|reply
You probably don't realize how many AOL sites you interact with regularly. They don't do a lot of 'hey this is an AOL site', so I suspect just like TC, you won't be aware of any major changes.
[+] skinnymuch|15 years ago|reply
Sure AOL is not what is was before, but even when you put aside it's dying internet subscription model, it's media branch(es) still do well over a billion in revenue per year.

I had a college-bound relative bring up some random web startup he heard about from Engadget's comment section. I'm sure he has no idea that Techcrunch even exists.

[+] kloncks|15 years ago|reply
This is epic. For all the crap we give AOL, they really did a nice job with the Weblogs acquisition. A lot of those blogs are still around and the leaders in the field.

I wonder a) what's happening to the amazing conferences b) and where Mike's future will be like.

[+] InfinityX0|15 years ago|reply
Huge props to AOL for showing that a massive company CAN pivot and use their brand equity/buying power to maintain a successful business.

Myspace, take notes.

[+] ig1|15 years ago|reply
Not such a great job with Compuserve, ICQ, Netscape, WinAmp, Bebo, etc. AOL have had more bad takeovers than good.
[+] iamdave|15 years ago|reply
I've always kind of disliked Arrington, thought he came off as a douche on a lot of occasions.

And yet, I'll give the man props. He started a business, hustled his arse off and made a big sale. Haters gonna hate, but good job.

[+] hop|15 years ago|reply
I wonder if TC was owned 100% by Arrington. That would be a big check in the mail. Hope the rest of the writers there get some dough.
[+] joshfinnie|15 years ago|reply
I have heard that Arrington is the majority owner (by a large scale). I think the CEO and a third person own a small share. I will look for the source I am remembering...
[+] edw519|15 years ago|reply
"You've Got Capital Gains"
[+] martythemaniak|15 years ago|reply
Blob: "Your shares are worth a hundred and seven dollars a piece!"

Leela: "They are? Oh my god! I'm a millionaire! Suddenly I have an opinion about the capital gains tax!"

[+] melvinram|15 years ago|reply
That's called a good problem to have :)
[+] AlexMuir|15 years ago|reply
That post is such a canned press release it's untrue. [insert name] CEO, commented: blah blah natural complement... Blah excited ... Blah great future together.
[+] henrikschroder|15 years ago|reply
"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"

...and they also had a big wheelbarrow of cash.

[+] bretthellman|15 years ago|reply
Anyone know for how much $$$ ?
[+] uptown|15 years ago|reply
It's ironic that the one piece of information TechCrunch always tried to include in their stories is left out when it's about themselves.
[+] tlb|15 years ago|reply
I've been privy to some secret acquisition terms in the past, and in most cases the speculation on the web had no connection to reality. When you make up numbers, they can get repeated until they gain credibility and drown out any genuine information about the deal, a disservice to the community.
[+] gojomo|15 years ago|reply
I hope he got a Bebo-like valuation... and can then buy it back for cents on the dollar 2 years later.
[+] raheemm|15 years ago|reply
$100 million. I figure Mike has no reason to sell unless its a sweet offer - TC has good revenue, its growing, and he has a good team running it.
[+] bretthellman|15 years ago|reply
I'm guessing for $80 million
[+] robryan|15 years ago|reply
It's interesting that with AOL trying to assemble a collection of new media websites/blogs they probably would have been better off spinning off another company that doesn't have such a bad reputation in media.
[+] markkat|15 years ago|reply
This bums me out. A TC that can't call AOL a pile of dung isn't TC to me. I really enjoyed TC, and have a lot of respect for Michael Arrington. I don't blame him at all for cashing in. But this will decrease the quality of TC.
[+] josefresco|15 years ago|reply
AOL owning Engadget and Autoblog, two blogs I visit daily, hasn't affected the quality one bit.
[+] templaedhel|15 years ago|reply
I am worried about the long term of this deal as well. Can techcrunch post AOL leaks anymore (Not that AOL really has leaks anymore)? Will the upper echalon corporation politics effect the writings? Will the Disrupt and TC50 events still happen? I would assume they would, who knows. I am also curious about the crunchpad/jojo lawsuits going on. Will the added aol resources help? Not effect it? Hopefully techcrunch stays roughly the same, or I will need a new main news source.
[+] Mystalic|15 years ago|reply
Congrats to the TechCrunch team.
[+] olalonde|15 years ago|reply
I couldn't help myself from laughing when I noticed AOL's first post was one of those press releases that Michael Arrington despises.
[+] jiganti|15 years ago|reply
Interesting follow-up to the talk of companies being acquired yesterday at disrupt. Arrington was surprised that Conway et al seemed to not have a problem with companies who were content with being acquired at less than billion dollar valuations and dramatic "change the world" dreams.
[+] carlos|15 years ago|reply
will Mike move out from Seattle now?