Update (April 2, 2007): For those of you still sending in
emails pleading with me not to stop writing about startups – this was an April
Fools joke. I do not in fact believe that there “just isn’t anything left to
invent.” Thank you.
Tomorrow we will
announce that we have acquired Philip “Pud” Kaplan’s FuckedCompany.com in a stock for assets transaction. The
basic details of the transaction are included in a press release that will go
out around 9 pm PST tonight, and Pud has also mentioned this on his personal blog. We weren’t going to announce
this for another week or so (even though I hinted at it on CrunchNotes), but too many people
know about it already and news of it was starting
to leak (see Wired and CNET as well). I don’t want to be in a
position again where other sites are breaking our
news, so we’re announcing officially this weekend.
We’ve been working on this deal
for months, it is good that we are finally able to close and announce it.
FuckedCompany first went live in
2000, chronicling failing and troubled companies in its unique and abrasive
style after the dot com bust. Within a year it had a massive audience and was
getting serious mainstream press attention. As the startup economy became better
in 2004, much of the attention the site received went away. But a large and
loyal audience remains at the site, coming back day after day for its unique
slant on the news. At its peak, FC had 4 million unique monthly visitors.
Since FC focuses on the negative
news coming out of startups, and TechCrunch tends to focus on the positive, this
combination may seem odd. But the sites are in fact extremely complementary. For
example, the audiences are about equal in size and have very little overlap. So
from day one we will double our reach and traffic.
Reasons For The Merger
The market moves in cycles, and
its clear that we are at the tail end of the current boom (disregard recent
statements I’ve made to the
contrary). Thousands of startups launched in the last year and a half, and well
over a billion dollars was invested in them. Even in good times, 90% of startups
fail. But recent events make me believe that even a 10% success rate might be
optimistic going forward. Some recent trends that alarmed us:
- Smart
people are saying the end of the current boom is near, and these guys are
rarely wrong in their predictions. See, for example, Peter Rip’s recent post
“Web
2.0 – Over and Out.” Peter really nailed the
analysis in that post – and it’s hard to argue with any of his conclusions.
- The TechCrunch DeadPool, where
we track failed startups, is growing exponentially. If the failure rate of
startups continues to grow this fast, we will be at a point where failures
will begin to outnumber new funded startups. Since 9/10 startups fail, by
focusing on the negative we will have much more content for the site.
- While
plenty of startups are launching, we aren’t seeing any actual innovation any
more. There just isn’t the “wow” factor around new startups like in 2004/2005.
That does not bode well for the future – there just isn’t anything left to
invent.
- We’ve
noticed a significantly higher number of negative comments on TechCrunch
relative to past periods. Our readers are unhappy; they want a change in
editorial tone.
Also, the current trend in
blogging, led by Valleywag and others, is to “go negative first, and ask
questions later.” That tabloid-style journalism tends to generate a lot of
eyeballs and, subsequently, advertiser dollars. This is something we just can’t
compete with. By acquiring FC, we can go more negative faster than anyone else
out there, when and if we need to.
With the combination of these two
companies, we can now effectively cover a startup from the idea stage, through
the hype and funding stage, and then cover its inevitable bankruptcy and
liquidation as well.
What To Expect
Integration will occur
slowly. The FuckedCompany site has a notice on it about the announcement and
will soon be upgraded to more of a TechCrunch look and feel (white background
instead of the previous black and red, and a new logo that matches our font and
style. For now, though, we are keeping the sites separate and each will continue
to operate normally. Deeper integration will occur over time.
Many of our readers still enjoy
reading about new startups, and we won’t stop covering them. But we will likely
move new startup coverage, which will be a secondary consideration going
forward, to a new blog over time. TechCrunch and FuckedCompany will begin to
mirror each other’s content, and at the appropriate time the brands and sites
will be merged.
Please Give Us Your
Feedback
It’s important that we continue to
tweak our business model to ensure that we stay relevant and publish compelling
content going forward. That’s the main reason this transaction occurred – we are
seeing the end of an era and are acting on what we are seeing.
I know our reasoning won’t satisfy
every one of our readers, and I understand that this is a lot of change coming
very quickly. I want your feedback to ensure that the merger is done tastefully
and properly. Leave your comments below, or send me a private email (my email
address is on the About page). I definitely want to hear your opinions.
When TechCrunch first launched in
June 2005, there were no blogs dedicated to covering new startups. Today, nearly
two years later, there are dozens of excellent blogs doing this, and mainstream
media is paying attention as well. Entrepreneurs with new ideas will always have
a way to reach potential users and customers. They just won’t be able to do it
here any more.
Update (3/31/07 2:52 PM PST): We’re gotten many requests for the text
of the press release. It isn’t officially going over the wires until tomorrow,
but i’ve posted it below. It’s still in draft form.
TECHCRUNCH TO ACQUIRE FUCKEDCOMPANY
Will Roughly Double Monthly
Audience and Create New Opportunities For Expansion
ATHERTON, Calif., April 1, 2007
– TechCrunch announced today that it has agreed to acquire the assets of
FuckedCompany, a website that features breaking stories on dot com company
failures. Assets to be transferred in the transaction include the domain name
fuckedcompany.com, all content on the site and other assets related to its
business.
Following the completion of the
transaction, the unique monthly visitors to the combined sites will be roughly
double what TechCrunch.com achieves currently.
“We’re thrilled to be part of
the TechCrunch team,” said Philip Kaplan, the founder and original editor of
FuckedCompany. “We see this as the natural transition for our company as
TechCrunch follows what is happening in the world of technology and start ups
and Fucked Company tracks what happens when they fail. The combined company
will be able to grow and stay relevant no matter what the current economic
forecast.”
“I’m excited to be working with
FuckedCompany, a website that helped define the extravagance of Web 1.0, and
which serves as a constant reminder to entrepreneurs and venture capitalists
that the market moves in cycles,” said Michael Arrington, founder of
TechCrunch. “As the Web 2.0 movement cycles down, we can now focus on covering
those startups that clearly aren’t going to make it to a liquidity event.”
The transaction is expected to
close shortly. More details are available on www.techcrunch.com and
www.fuckedcompany.com.
About TechCrunch
Founded in 2005, TechCrunch is a
leading network of weblogs and other sites focused on providing news, analysis
and services around new technology startups. The TechCrunch network delivers
more than 4 million monthly page views to 1.5 million unique month visitors.
The TechCrunch network includes Techcrunch.com, a weblog focused on new web
startups, CrunchGear.com, a weblog focused on new technology gadgets,
MobileCrunch, a weblog focused on mobile technology, Japanese and French
versions of TechCrunch.com, and Crunchboard, a job listing site.
About FuckedCompany
Founded in April, 2000,
Fuckedcompany was the premiere news website covering the first dot-com bust.
At its peak, Fuckedcompany was visited by 4 million unique users monthly and
was named “Site of the Year” in 2000 by both Yahoo and Rolling Stone, and was
#6 is TIME Magazine’s “Best of 2000.
Steve Jagger - Ubert · 166 weeks ago
CB · 166 weeks ago
This seems to happen with all your announcements....
Ross Mayfield · 166 weeks ago
Stan Miller· 166 weeks ago
Gasper the Friendly· 166 weeks ago
steve · 166 weeks ago
Why would you merge the two sites? Seems a little fishy ;)
Ryan · 166 weeks ago
RBA · 166 weeks ago
Where's my prize? :-)
markus941 · 166 weeks ago
Sounds like a lot of change quickly. I agree with Stan - maybe let the dust settle a little before a complete overhaul on FC - the troops might get restless otherwise.
StartupMeme · 166 weeks ago
Zaid · 166 weeks ago
I've a feeling a lot of TC traffic comes to read about and mock(or cheer) new startups you feature...doing the same to Google and Yahoo announcements isn't the same fun.
-Zaid
steve · 166 weeks ago
hmm...
Spaceballs the Start· 166 weeks ago
AhmedF · 166 weeks ago
I love it.
Robert Gaal · 166 weeks ago
Wait, what date is it tomorrow...?
Allen Stern · 166 weeks ago
Erik· 166 weeks ago
Chris· 166 weeks ago
Josh · 166 weeks ago
Changing TechCrunch's focus would be a mistake in my mind. Why mess with a good thing? Don't overthink this.
Congrats on the acquisition.
steve · 166 weeks ago
Zaid · 166 weeks ago
Especially when you read Mike's presentation in Feb 07:
"We’re just getting started.There is no bubble. And the best Internet apps are still to come."
http://www.scribd.com/doc/5719/mike-arrington
Good stuff Mike:)
Randy H. · 166 weeks ago
Alex· 166 weeks ago
Can you Digg It?"
Dean @ Sachi · 166 weeks ago
Mark Boris· 166 weeks ago
Zaid · 166 weeks ago
For all you know the market might crash come Monday and Google will be out for your head:)
-Zaid
Dan · 166 weeks ago
Adam Healey · 166 weeks ago
WTF. With all due respect, this is a totally bone-headed move. Not buying FC.com, that is a great move (depending on the terms). But merging the two, that is idiotic. Here's why:
Your words: "But the sites are in fact extremely complimentary. For example, the audiences are about equal in size and have very little overlap. So from day one we will double our reach and traffic."
Right. They serve two different audiences. So, keep them separate! Keep their brands separate! Think of yourself as Calacanis 2.0 - you own multiple online media properties.
If you "merge" the two businesses, in look, feel, and coverage, you'll just be making compromises for both audiences and will end up losing readership from both sites in droves.
"Entrepreneurs with new ideas will always have a way to reach potential users and customers. They just won’t be able to do it here any more."
Well, guess I can take TC off my RSS feedreader. This is your bread and butter Michael, why on earth would you do something as stupid as that. I can't help but think you're intentionally being provocative to stoke controversy.
RBA · 166 weeks ago
But now that I actually read the post... reading that TC will stop covering startups, hmmm... :-)
Jason Cox · 166 weeks ago
lol
weird
StartupMeme · 166 weeks ago
Does this means TC will no longer cover startups ?? If thats the case i am saddened
Adam Healey · 166 weeks ago
Rockwell· 166 weeks ago
Anon· 166 weeks ago
I must say this is extremely elaborate. How did you get Valleywag to help you with this?
StartupMeme · 166 weeks ago
Can we say the same thing about TC ??
cedric · 166 weeks ago
Hint #1:
"By acquiring FC, we can go more negative faster than anyone else out there, when and if we need to."
Sounds too honest to be true...
Hint #2:
"Entrepreneurs with new ideas will always have a way to reach potential users and customers. They just won’t be able to do it here any more."
Contrary to anything Mike have said until now. He's supposed to love entrepreneurs.
Now, it's not like it's not making sense to cover the every aspect of startup life, and maybe TC did acquire FC, but I can't imagine the two merging.
Randy Jackson Tom· 166 weeks ago
Noah· 166 weeks ago
Valerie Cruz· 166 weeks ago
Earlier this week we get a post about BritePic (redefining the img tag) - it is amazingly positive when 99% of the comments were negative - now let's see - who owns britepic - oh lookie here - its Philip Kaplan - the former owner of FC. Actually the post was overwhelming positive.
So - part of the contract was to wait to pimp the heck out of his new thing. I guess.
Certainly interesting.. I can't believe no one picked up on this so far. I guess it was perfect timing for Philip that he launched this new app just before the purchase.
StartupMeme · 166 weeks ago
Randy Stewart · 166 weeks ago
Happy AF Eve
Cheers,
Randy Stewart
randy@boxbe.com
Mathew Ingram · 166 weeks ago
eas · 166 weeks ago
RBT· 166 weeks ago
suspicious· 166 weeks ago
hahahahaha omg. good one.
i really hope this isn't real.
Zaid · 166 weeks ago
suspicious...· 166 weeks ago
Allen Stern · 166 weeks ago
Mike cannot really believe that a startup will "inevitably" go to BK and Liquidation.
Good one!
Ok here is my detective work and why they call me Columbo :)
1. Mike says "With the combination of these two companies, we can now effectively cover a startup from the idea stage, through the hype and funding stage, and then ultimately cover its inevitable bankruptcy and liquidation as well."
2. Mike then says "When TechCrunch first launched in June 2005, there were no blogs dedicated to covering new startups. Today, nearly two years later, there are dozens of excellent blogs doing this, and mainstream media is paying attention as well. Entrepreneurs with new ideas will always have a way to reach potential users and customers. They just won’t be able to do it here any more."
So he won't cover startups on TC but he will cover them on TC to watch them fail on FC?
The plaintiff rests.
Louis Gray · 166 weeks ago
I had noticed TechCrunch kept tossing Web 2.0 companies into the Deadpool. Those were the words that FCompany has been using as well. In fact, I didn't like it. I thought TechCrunch should report the news and the startups and not exult in the failures of some. We have to anticipate and expect failure, not champion it.
If this is a true merger, it is an odd one. FCompany's boards are full of the most vile comments you will ever see. You won't want that here.
Carl· 166 weeks ago