Written on October 6th, 2005 at 12:10 pm by Darren Rowse
AOL to Buy Weblogs Inc
I was just saying to a fellow blogger the other day that it will only be time before a bit blog network sells out to a bigger web entity for some massive amounts of cash. Well today seems to be that day with Threadwatch reporting that AOL is about to by Weblogs Inc!
Paid Content writes of the deal by saying:
“This is a very quick exit: the company was founded about two years ago, and took some money from Mark Cuban a year down the line. For Calacanis, this is his second company being sold in a space of about two years…his original company Rising Tide Studios was first sold to Wicks Business Information, which in itself was bought out by Dow Jones.”
How much will they get? I guess this will depend upon what the deal includes and how involved the Weblogs Inc team stays involved with the project. Estimates of what the deal is worth at Paid Content range from $20,000,000 to $35,000,000.
The deal is expected to be announced officially this week.
Update: Get the official word from AOL and Jason.
Update: Interesting commentary on the sale at Wealth Junkie.
18 Responses to “AOL to Buy Weblogs Inc”
Jacob G.
October 6th, 2005 12:32 pm
Just read that on threadwatch as well. I knew you’d have something posted here as well :P I expected them to get bought out, but I expected it to be a year or two down the road. Craziness
fivecentnickel.com
October 6th, 2005 12:40 pm
Wow, I’d be happy to sell out for $20M-$35M!!!
dan
October 6th, 2005 12:42 pm
Im Selling a blog for $20mil to $35mil ono
email me for details.
(haha)
Betamode » AOL kauft Weblogs Inc
October 6th, 2005 1:28 pm
[…] Die Gerüchte wurden bisher nicht bestätigt, Darren (enternetusers) geht jedoch davon aus dass der Deal diese Woche noch bekannt gemacht wird. […]
HostingDiary
October 6th, 2005 1:28 pm
Mines only 2 weeks old so I’ll take 500k Bargain!
Andrew
Jacob G.
October 6th, 2005 1:39 pm
I kind of wish they’d been bought by a company I like, but oh well. It will be interesting to see the direction they take it.
jenner
October 6th, 2005 1:50 pm
very good
Andrew
October 6th, 2005 2:25 pm
I dont think I have seen an unsubstantiated story spread through the blogosphere so quickly…
Andrew
October 6th, 2005 2:50 pm
although if scoble says its true (and reuters)
http://radio.weblogs.com/0001011/2005/10/05.html#a11377
Paul Short
October 6th, 2005 2:53 pm
I wonder what Jason’s role in the company will be, if any?
The guy’s a serial entrepreneur and with the extra funds I expect him to come up with something brilliant (and possibly blogosphere related) ;-)
Jacob G.
October 6th, 2005 2:58 pm
I imagine he’ll at least be contracted to stay on for a year or 2. I imagine he’ll also have a pretty strict non-compete clause.
Gawker Media Potential Sale to News Corp: Blog Tips - enternetusers
October 6th, 2005 3:28 pm
[…] Update: Looks like Duncan has his blog up and running again and the rumor is that News Corp is interested in the gossip blogs at Gawker more so than their others. It is certainly an interesting time for established blog network owners with this news, the rumored sale of Weblogs Inc and other networks being approached by VC investors. Filed under Blog Networks | Get the Free enternetusers Newsletter […]
Paul Ooi
October 6th, 2005 3:41 pm
Wow.. that is awesome!
Yaro
October 6th, 2005 3:58 pm
Not bad for two years worth of work.
Recipe for success - build a content network with lots of readers. Easier said then done? Perhaps, but riding the blog wave of popularity is certainly still possible, especially with many people willing to write for pay. Bring them together under a theme and in two years time you might make a million or two yourself.
Yaro
October 6th, 2005 4:05 pm
Actually if it was me right now going to start a blog network I’d pick a solid untapped niche of which there are certainly many available. The blogosphere is soo untapped…
Think an Oprah style blog network - nothing but topics interesting to stay at home moms - fashion, self development, cooking, gossip. Get a good handful of blogs up on those topics, say start with 10 and aim to get to 50 after a year. Keep it growing, monetize with advertisements etc and then someone will come knocking and offer you a big cheque.
Talk about a time of opportunity!
Of course looking at this at a macro level makes it seem easy, the path is a lot more complicated and labor intensive then the “big picture” view might make it seem. Commitment is required, maybe some venture capital to hire the bloggers and keep them well paid while advertising revenue grows so you start off professionally and with good staff. Afterall the bloggers will be the make or break variable because you require great content, good writing and someone that cares enough about their blog to get out there and market it.
Anyway, this post is long enough…back to work Yaro!
Dmitry
October 6th, 2005 5:22 pm
It’s amazing!
lyndon
October 6th, 2005 5:53 pm
What will AOL add to the Weblogs inc brand?
What a stupid stupid purchase. This is not good for AOL, they live in the Mom and Pop land of psuedo internet, although as customers they do spend spend spend. I see Time Warner being a better fit, or Dennis Publishing or Emap, but not AOL.
This is good for competitors of Weblogs inc, as it means it is going into corporate hell. It’s brand is its ceo, when it loses that it loses its soul.
jlchannel
October 7th, 2005 12:51 am
Do you think this is a good deal?
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