Wednesday, April 09, 2008

VentureBeat: TechCrunch, VentureBeat in merger talks

"We hear Michael Arrington is in advanced talks to acquire VentureBeat, a smaller tech blog which, like Arrington's TechCrunch, is trying to expand from the niche of covering startups. When Arrington issued a rant about the dangers of tech blogs raising venture capital, it was easy to dismiss his talk of a blog rollup as drunken fantasy. Arrington's concern: That his competitors, by raising money one by one, would make it financially impossible to assemble a "dream team" of bloggers. But why on earth would anyone accept a lower valuation just to be part of Arrington's team? Arrington, we're told, has tentatively secured venture backing from Eric Chin of Bay Ventures, a longtime business associate. That would give him the capital to buy up at least some of his rivals."

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