And Now Comes The Real Blog Bubble
from the so,-what's-hot-now? dept
Rafat Ali got the scoop last night, and today it's been confirmed that AOL is buying Weblogs Inc.. As others are noting this is probably a good deal for the crew at Weblogs Inc., but not necessarily such a good deal for AOL. It's certainly nothing on the level of some other bubble 2.0 buyouts, but it's tough to see how this deal does much to enhance AOL's offerings in any way. It seems like so much they do these days: a sudden kneejerk reaction to what seems hot, but with little strategic coherence. Either way, the deal isn't all that surprising when you consider the players and the relative hype around the space. What will be much more interesting, however, is the fallout -- and whether it suddenly means a lot of other blogs are overvalued as well. Also, to be watched, is how this impacts all of Weblogs Inc. authors who are paid relatively little without any equity participation. Some may get upset that the full timers at WIN just made a pretty penny off their labors. AOL may need to prop up the amount paid to keep them, further cutting into the rationale for this deal.