AOL looking to sell tech news sites
Sarah Lacy of PandoDaily.com reports that AOL is seeking bids for its two tech news sites, TechCrunch and Engadget.
“The asking price? A hefty $70 million to $100 million.
“AOL is hoping to make something off the drama of the past couple of years: $70 million would net the struggling Internet company about $10 million profit on what AOL originally paid for both TechCrunch and Engadget’s original parent Weblogs Inc. According to one source, AOL management has been seriously considering the move since early this year. The news also sheds light on why Arianna Huffington was so relaxed about relinquishing responsibility for the division last month, according to reports.
“Possibly acknowledging that finding a buyer might take time, the company will be evaluating the potential sale over the next six months to a year. That said, we’re told AOL management would prefer to move quicker if the right deal came in the door.
“Still, even with an extended timeline, $70 million may be a tough sell. While the brand recognition of both Engadget and TechCrunch remain strong, the revenue side of the AOL Tech business has been hit hard in recent months. TechCrunch has now lost almost all of its internal revenue generating team.”
Read more here.