Monday, May 23, 2011

AOL - Yahoo Merger? AOL Struggling? Tim Armstrong's Icy TechCrunch Talk

TechCrunch Founder and Editor Michael Arrington says he hates working for other people, but now he works for AOL CEO Tim Armstrong and Arianna Huffington, and the relationship is obvious in how the interviews "feel." 

This one with Armstrong at TechCrunch Disrupt New York 2011 was a bit icy by comparison with 2010, and only because Michael kind of pushes Tim the boss rather than Tim the guest.  What follows are some highlights from their just completed conversation. 

On TechCrunch Disrupt's New Home

Tim says that the Pier 94 is much better than the former Merrill Lynch Office that was the scene for TechCruch 2010, and AOL has a staff for Michael at TechCrunch now, versus last year.  So, the impact of AOL on what TechCrunch does is obvious, from talks with his boss, and, it would seem the selection of a better space, that one has to assume is more expensive to use than the year before.   Why? Because AOL's helping to foot the bill for it's use. 

On AOL and Content

AOL revenue has been declining, Michael said. But Tim says he's still happy with the company's direction and feels that the overall strategy is the right one saying "everybody in that space is using content to differtiate themselves. Content sites are expanding faster than the Internet's growth itself," And adding "I love that people think that content is not a good business, because that keeps people out of this business."

On AOL, Deals, and Yahoo

A fair ammout of the talk was a hint that AOL and Yahoo may do some kind of deal.  But overall, AOL is taking a breather from deals like the purchase of TechCrunch, but may do more deals with "About 5 or 10 companies."

On AOL and TechCrunch, and Parties

TechCrunch, from a brand perspective, to him, was a Californa brand, which Michael disagrees with "We had parties in London, and we were a Worldwide brand" he said.  And I have to agree with Michael here.  There's a little bit of the "You were OK before we bought you, but now you're awesome" talk coming from Armstrong, and it's understandable that Arrington would take issue with Tim's take.  TechCrunch was global as much as Tech is global, from an audience perspective, and long before AOL happened along, with its parties and stuff. 

Michael says that AOL has a lot of parties, where they do "vodka shots off ice sculptutes," but they're parties that TechCrunch staff doesn't attend because they haven't been invited. Tim said it's because no one ever thought to invite them. Too funny.

But Michael really wanted to know "Why is Arianna editor and chief? Tim said, "I didn't think you wanted the job."

On AOL and Yahoo

Arrington said "My guess is, withing a year, AOL and Yahoo will become the same company," and said openly that AOL is struggling "Without the dialup revenue, it is, ...I get the feeling that this is getting a little dicey."

"AOL, it has made a turn-around, it's on a comeback," Armstrong said.

On a question about paywalls and local content. Armstrong said that local monetizes better than people written, and that paywalls can work. "What are you putting behind the wall, and what is it offering," he says. Tim's a "long-term believer" in paid content. "I think we're at the start of the next evolution of content," Armstrong said.

On Arrington and Conflict Of Interest

Did Michael violate policy on investing in startups after TechCrunch was purchased by AOL? Well, what was he supposed to do with his share of the $30 million they got.  As long as he's open about the investments, from a blogger perspective, there's nothing wrong with what he's done. 

Overall, a really different vibe this time because when Tim was on at TechCrunch in 2010, the interview then was more friendly and easy; not this time.

It was pretty icy.

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