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AOL Acquisitions: 5Min, TechCrunch & Thing Labs Worth $97.1 Million
Last month AOL made three large acquisitions: video service 5min, tech blog network Techcrunch and Thing Labs (makers of the Twitter client Brizzly).
Louis Gray reported that the Thing Labs acquisition price was $18 million with a total including earnouts of $30 million. Peter Kafka reported that the 5min acquisition was an all-cash deal valued at somewhere between $50-65 million. Most have suggested the Techcrunch sale price at between $25-40 million. (Om Malik originally broke the news of the Techcrunch acquisition.)
Assuming all three acquisition reports are correct, that would mean a total acquisition price of ($18 + 50-65 + 25-40) between $93-123 million. So assuming the lower numbers are correct, that would fall in line with today’s announcement.
Update: the AOL 10-Q notes the 5min sale at $64.7 million (that’s what Kafka initially reported) which leaves $32.4 million for Techcrunch and Thing Labs. If Gray is correct that Thing Labs was acquired for $18 million, that would leave $14.4 million for Techcrunch, a much lower number than the $25-40 million reported by some outlets. But the only confirmed number at this point is the 5min acquisition price so the other two are still a mystery. These amounts don’t include the earnouts – much of which I assume goes to TC because it’s critical that some of their staff stay on board.
AOL has released their Q3 earnings today and the announcement includes a short brief regarding the acquisitions. Total price for all three: $97.1 million plus $23.1 million in earnouts over the next three years. They were able to lump all three acquisitions together which means we may never know exactly what each acquisition price was.
Here’s the bit regarding the acquisitions, “In late September 2010, we completed the acquisitions of 5Min Media, Thing Labs and TechCrunch for $97.1 million in the aggregate, net of cash acquired. In addition, we have agreed to pay an aggregate of $23.1 million in total to certain employees of the acquired companies over the next three years contingent on their future service to AOL.”