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TechCrunch and AOL: Is Selling Your Blog a Mistake?

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When AOL bought TechCrunch back in 2010, it seemed like the perfect pairing. Some were skeptical, but Mike Arrington really seemed pumped about it and encouraged the TechCrunch community to be too, particularly in the post Why We Sold TechCrunch To AOL, And Where We Go From Here. Oh what a difference a year makes, right? I don’t think anyone at TechCrunch in 2010 would have suspected the drama that was to come in 2011. If things don’t change, TechCrunch might even fail.

So was selling the blog a mistake?

Financially, it’s hard to argue that it was. The widely-reported sale price was $25 million (though some believe it was much higher), and while TechCrunch’s popularity means that this money could potentially be made back in just a few short years, the acquisition was still a risk on AOL’s part. So while you can always argue that something was worth more, for argument’s sake, let’s say that TechCrunch did pretty well. I mean, the deal wouldn’t have been signed if both parties weren’t happy with the sale price, right?

What bloggers know to be true, though, is that blogging is about way more than money. I think that’s the key that most companies buying blogs are still missing.

AOL is a large corporation. Their main goal is to make money. Someone like Arianna Huffington has no personal attachment to TechCrunch, and I don’t fault her for that. Why should she? Why should anyone who wasn’t there to build TechCrunch from scratch? TechCrunch isn’t AOL’s baby, it’s blood, sweat, and tears. TechCrunch was…and is…a business investment.

For many of the writers there, TechCrunch is a home. I think most bloggers feel that way. It’s easy to sell a house. It’s hard to sell a home. So when someone says, “We’re going to buy this house, but you can still live here,” it is easy to keep thinking of it as your home.

Only it’s no longer yours, not really.

It’s more like you’re renting the house. You can make it as cozy as a home, but the landlord can come in and paint the walls a color you hate, tear down the deck, or even evict you. Your lease agreement only protects you so much.

When you sell your blog, it doesn’t matter what kind of off-the-record promises were made. Tomorrow, the company that purchases your blog could make decisions that you don’t like, and when that happens, you don’t have any control to stop it. That’s the risk you take when you sell. True editorial independence no longer exists. Even if you have this freedom, it is only because your overlords are allowing it. Your kitchen walls are still that beautiful shade of red you adore because the landlord is allowing it. Tomorrow, the house’s owner could be in a yellow mood. They can change their minds.

And they will, if they think it’s the best choice for their business investment. They haven’t “grown up” with the blog, so they don’t always make the best choices in terms of the community or design or even content. They make the best decisions in terms of money, or so they think. Personally, I feel that any blog ruled by money won’t succeed, at least not to its full potential. That’s not necessarily for me to say, though.Everyone defines success differently.

If you sell your blog, you don’t get to make the decisions anymore. You can dole out advice or even make threats to discontinue your involvement with the blog…but you can’t stop the train once it is moving. Selling your blog is that first chug-a-lug without you as a conductor.

Bloggers can be a stubborn bunch – and I’m definitely including myself in that statement. What a corporation suggests might not be a bad idea, but changes can be scary. It’s really easy to feel the urge to push back whenever anyone suggests that you’re doing something wrong or could be doing something better, especially if you’re already pretty successful. “That’s not how we do things around here.” Well, it is now. When you sell, there are changes that will be made. Even if you think you’re doing the best possible job, outsiders with a different perspective won’t always agree.

So is selling your blog a bad idea?

Yes – if you think it’s going to continue moving forward the exact same way as it is under your leadership. TechCrunch will never be the same. No sold blog is the same afterward. No matter what the terms of the sale, things are going to change. Those changes could be good, if you give them a chance. They could also be horribly wrong, and you could see your baby fail. In my opinion, you shouldn’t sell unless you’re prepared to walk away, enjoy the money, and fondly remember your blog how it was, no matter what it has become.

TechCrunch is not “Too Big To Fail”

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TechCrunch certainly has been dominating headlines recently. I’m having a hard time keeping up.

The quick run-down for those of you also having trouble staying up-to-date: Mike Arrington quit. Or was fired. Or was forced out. No one seems to have a straight answer on that one, but in any case, he’s gone, but he already is sparring with new editor Erick Schonfeld and talking about his next project. Writer Paul Carr quit in what is either a blaze of glory or grandstanding, depending who you ask, by posting his resignation letter on the blog. Schonfeld accepted his resignation in what is either a justified response or unprofessional virtual middle finger, depending who you ask, by posting a response on the blog. Arianna Huffington lashed out at the Wall Street Journal for “shoddy journalism” when covering the TechCrunch drama. By the time I’m done writing this post, who knows what else will happen. There seems to be no shortage of people who want to make news.

The opinion I find most interesting in this crazy story, though, is that of MG Sigler, who has been writing for TechCrunch since 2009. He remained silent for a while, watching the craziness unfold over the past few weeks, but finally felt the need to post his point of view on his personal blog in a post entitled “What Needs To Be Said” – and I find myself agreeing with much of what he writes.

But there’s one part in his post that I keep reading again and again, and it highlights what I think everyone involved is missing:

“Many of you are watching TechCrunch unravel before your very eyes. That sucks. It sucks for me too. But TechCrunch is also too big to fail. One way or another, it will live on. Try as hard as AOL might, they can’t totally f*** it up. That’s just the truth.”

The bold-facing is my work, not Siegler’s. The censoring is mine too, for the record, though that’s not as important. What is important here is Siegler’s assertion that TechCrunch is too big to fail. That seems to be the mindset of most of the people involved in the TechCrunch drama, and even most of the people around the web talking about TechCrunch.

I assure you, TechCrunch is not too big to fail, the same way the Titanic was not unsinkable. Nothing is too big to fail. Ask MySpace. Ask Borders. Ask Circuit City. Ask the Romans.

Was TechCrunch’s sale to AOL a good thing? Is all this drama Arianna Huffington’s fault? Was Erick Schonfeld’s backdoor deal shady or justified? These are all topics we hope to cover in future posts here at the BlogWorld blog, but what I know for certain right now is this: A lot of energy is going into this drama. Imagine if that energy was instead harnessed and channeled into making TechCrunch more successful.

Public problems like we’ve seen with TechCrunch would kill lesser companies. TechCrunch has survived because of their size, and they’ll continue to survive even as employees and ex-employees continue to bicker. But for how long? Certainly not forever, no matter how big they are. Just because they are surviving right now doesn’t mean their survival is guaranteed. When you are wrapped up in your own drama, you lose sight of what you’re doing – providing news and opinions to your community. No community sticks around if they’re ignored. Even the most rabid fans will only put up with shenanigans for so long.

And furthermore, is “just surviving” good enough? Isn’t the goal of any company not to survive, but to thrive?

The fact of the matter is that most TechCrunch readers really don’t care about all  this BS. Sure, it’s entertaining to watch all the drama happening for the same reasons people rubberneck at a car accident, but if TechCrunch can continue to provide the content its community wants, most people don’t give a you-know-what who’s working there. You’ll have hard-core Mike Arrington fans or Paul Carr fans or Huffington haters who will boycott the site, but even the readers who are being vocal will continue to read TechCrunch if the blog focuses on giving the community what it wants.

If they continue to instead focus on the drama, that readership will eventually fade and the site will fail. People don’t go to TechCrunch to see public outbursts. It’s only entertaining for so long before it starts to get annoying. When a company is too wrapped up in internal affairs, it is like a slow trickle of water, which might not seem very powerful until you remember that a relatively small river is responsible for the Grand Canyon.

In my opinion, saying that any company is “too big to fail” is basically saying to the community, “it doesn’t matter what we do because you will never leave us.” I don’t think that’s what anyone at TechCrunch intends to say, but the message is there every time people makes the decision to post nastiness about one another on TechCrunch rather than posting real news. Any community will leave if pushed away for too long. So I hope that TechCrunch stops pushing. Otherwise, the giant will begin to crumble and overtime, it will fall.

TechCrunch Editor Michael Arrington Steps Down After Six Years

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Michael Arrington, the editor of the uber-popular tech blog TechCrunch, has announced he is stepping down after six years on the job.

His next step is to head up the $20m private investment fund, CrunchFund, which is backed by AOL (who purchased TechCrunch last year) and several other venture capitalists.

Here’s a brief description of CrunchFund:

CrunchFund is an early stage venture capital firm founded by Michael Arrington and Patrick Gallagher. The fund invests in and works with information technology companies at any stage but is primarily focused on seed and early stage investments.

You can see all of the big name investors here.

Arrington will still have a role as a writer for TechCrunch, but no editorial control. His departure is raising some eyebrows as to the future of TechCrunch under AOL. Rumors of an AOL sale have also been circulating.

The Guardian reports, “More recently, rumors of a sale or plans to go private have swirled around AOL. The content company’s shares have soared 24% since Monday, to $15.19, amid speculation that the company had met bankers Allen & Company. AOL was also rumored to be considering a sale of its dial-up internet business, which accounts for about half of the company’s $1.62bn market capitalization.”

This announcement, the state of TechCrunch and the state of AOL has everyone in the tech blogging world talking.

Here is some clarification as to the relationship between TechCrunch and CrunchFund, written by TechCrunch writer Paul Carr.

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