AOL buys TechCrunch: Smart move?

The internet giant buys a hugely successful tech blog. Will the purchase pay off?

TechCrunch, founded by Michael Arrington, specializes in breaking tech news.
(Image credit: Getty)

With its newly announced purchase of leading technology blog TechCrunch, AOL has made its most aggressive move yet to attract users and advertisers. AOL CEO Tim Armstrong said the purchase would give AOL "a much larger tech presence" on the internet. The deal reportedly cost AOL between $25 million and $40 million, and includes incentives to keep TechCrunch founder and star Michael Arrington on board. Will AOL get its money's worth? (Watch Arrington explain why he sold TechCrunch)

This is a smart deal for AOL: Buying TechCrunch could "pay off" nicely for AOL, says Jessica Guynn in the Los Angeles Times. More than 9 million people read TechCrunch every month, and many of them are "venture capitalists, angel investors, technology executives, and other high-net-worth" people advertisers will pay big bucks to reach. That means AOL will be able to charge higher rates for its ads, and it should have no trouble recouping its investment.

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