Tuesday, September 28, 2010
AOL Buys TechCrunch
"AOL’s official release doesn’t disclose terms. Business Insider’s Nicholas Carlson says sources close to AOL say the company has said it paid $25 million for TechCrunch. A CNBC report this afternoon, however, pegs the figure at $40 million.
Carlson thinks the figure is surprisingly low, given that TechCrunch founder Michael Arrington has said the company’s revenue is running at $10 million a year."
Carlson might want to ratchet down his valuations of news sites. If Tech Crunch is bringing in $10 million in revenue every year, a 2.5X buyout isn't out of the ordinary for a network of news sites. Tech Crunch also operates MobileCrunch, CrunchGear, TechCrunchIT, GreenTech, TechCrunchTV and CrunchBase.