AOL splashes the cash in TechCrunch acquisition

by Steven Mostyn - Sep 29 2010, 09:51

Internet giant AOL has announced the purchase of popular technology blog TechCrunch, an acquisition likely to boost its momentum where advertising revenue and online readership are concerned. Ah, we can but dream.

Although concrete dollar figures regarding the deal have not been confirmed, current reports suggest AOL has spent somewhere in the vicinity of $25 million USD for the tech site, which was founded in 2005 by one-time corporate lawyer Michael Arrington.

"It was either time for us to sign investing a lot of money in things like technology and marketing - which probably meant raising a venture round - or to sell and simply partner with somebody who could do that," commented Arrington in a Bloomberg report.

Currently the third most popular technology blog in the United States, and with a monthly unique visitor count of 3.8 million (according to traffic specialist comScore), TechCrunch is expected to finish the current year with profits of around $3.5 million USD.

Arrington, who will be staying on board with AOL for a period of at least three years, has insisted that the purchase will have no adverse effect on the site's established editorial tone.

TechCrunch and its offshoots CrunchBase, MobileCrunch, CrunchGear will be added to AOL’s existing portfolio of tech websites, which includes the likes of Engadget and The Unofficial Apple Weblog (TUAW).

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