AOL has been with the leading technology blog site TechCrunch signed a formal purchase agreement. Although the parties to the transaction were not disclosed relevant financial terms, but sources said, AOL acquired TechCrunch price for $ 30,000,000.

AOL chief executive Tim Armstrong has said he is committed to developing an “original first” corporate culture, that is, start developing the internal culture, the world’s longest established AOL as a start-up companies to development. But why should the acquisition of AOL Michael Arrington was the founder of TechCrunch it?

The deal is reminiscent of 2005, AOL acquired Weblogs. Weblogs, which owns Engadget and Joystiq and other well-known blog site. Earlier today, AOL has also announced the acquisition of the online video startup 5Min, and there are rumors that AOL wants to acquire Mashable and Howcast.

The following is the reason AOL acquisition of TechCrunch:

One reason: TechCrunch has a large number of high-quality readers

TechCrunch claims to be the number of sites over 9.2 million monthly readers, the number of page views over 30 million times. Market research firm comScore data show that, TechCrunch readers of the monthly number of global 700 million. And Engadget different, TechCrunch readers are more likely to be angel investors, venture capitalists, technology executives, or very interested in technology news people. AOL sales executive Jeff Levick said: “TechCrunch and Engadget readers between the little overlap.”

Therefore, TechCrunch readers are more likely to science and technology industry insiders, so TechCrunch advertising rates can be higher.

Reason Two: TechCrunch readers with consumer

Even without AOL, TechCrunch had a lot of the same consumer advertisers, including Cadillac and Mercedes. Armstrong said: “TechCrunch has both users, we feel it is a double benefit of the transaction.”

Three reasons: TechCrunch can hold a large event

TechCrunch not only have a large number of readers, but held twice every year Disrupt the General Assembly. Arlington said, Disrupt TechCrunch General Assembly is an important source of revenue. Each start-up companies present at the meeting must pay a fee to TechCrunch, before attending the General Assembly to show investors. In addition to outside investors, such as large media company AOL will also attend the TechCrunch Disrupt the General Assembly to understand the potential start-ups to determine whether to make acquisitions.

Four reasons: TechCrunch has already profitable or close to

TechCrunch is a privately owned company, and will not release their sales data. But Arlington has said, TechCrunch has been profitable every year revenues nearly 1,000 million U.S. dollars. Although this figure could not be confirmed, but taking into account each Disrupt the General Assembly has a large number of participants, but only 32 employees TechCrunch, TechCrunch therefore at least close to profitable.

Five reasons: AOL does not succeed within the start-up companies

AOL’s best media companies, such as Engadget and Joystiq, came through external acquisitions. At the same time, AOL start-up companies within the media of the lack of focus. One AOL employee said: “When Armstrong said he will continue to profitable investment projects, the company everyone knows what this means, and this will have the impact of existing assets.”

After the acquisition of TechCrunch, Arlington will be the White AOL. We can say that Arlington is like a double edged sword, his remarks are very high profile, but also the most talked about TechCrunch article, but such remarks could give AOL trouble, because in the past once and Arlington some of the company’s public relations staff and executives dispute. As a listed company, which may be AOL’s burden. Whether the remarks at Arlington, Armstrong will bring trouble, remains to be seen.

For readers, AOL acquired TechCrunch is a good thing. Not only for TechCrunch, a personalized blog for all sites, the most attention are likely to leave people to make the site into development difficulties. However, Armstrong said, AOL has signed a three-year with Michael Arrington of cooperation agreements, Arlington, Armstrong hopes to always be stationed at TechCrunch. He said: “the development of many of these companies are driven by the founder, and we hope that Michael and TechCrunch brand to move forward together.”

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