TechCrunch is a highly regarded news site that was founded in 2005 and won a reputation for scoops on Silicon Valley dealmaking. AOL bought it last year as one of several big moves by the onetime online powerhouse—moves that included acquiring Huffington Post and installing impresario Arianna Huffington as AOL editorial chief—to reinvent itself as a must-visit emporium of news and comment.
At the time of the deal, reportedly worth $30 million, AOL said it expected TechCrunch’s entrepreneurial founder, Michael Arrington, to stick around for at least three years. Then came word earlier this month that Arrington was starting a venture capital fund, which would sprinkle seed capital on tech startups. Called CrunchFund, it had among its early investors AOL itself, which put up $10 million of an initial $20 million in funding.
Here’s where it gets tacky. Although Arrington would step aside as TechCrunch managing editor, both he and the site would continue to cover projects that the fund would help bankroll.
That is a notable departure, to say the least, from customary journalistic protocol, which demands that reporters steer wide of topics in which they have personal stakes. And so the fat hit the fire. After all, the potential wasn’t just pimping the Continue reading “On transparency: When coming clean isn’t clean enough”