IAC chairman Barry Diller thinks AOL CEO Tim Armstrong blew it handling the whole Michael Arrington-is-launching-a-VC-fund saga.
During a Paley centre keynote Diller said TechCrunch “is not a journalistic enterprise” and that it has never acted like one.
He says it has always been a blog powered by Arrington’s “voice” – a voice that is “biased, mean, and capable of saying anything and capable of playing 100 different games.”
AOL knew this when it bought TechCrunch, and because of that, Diller says that when AOL Huffington Post president Arianna Huffington complained to AOL CEO Tim Armstrong about conflicts of interest after Arrington launched a venture capital fund, Armstrong should have told her: “shut up and go back to your room.”
Instead, he let Huffington fire Arrington, who is now planning to launch a new “personal” blog.
Diller laughed at the situation.
He told keynote intereviewer Jason Hirschhorn: “So now [Arrington is] gone. And now they own this thing which has no voice.”
“Congratulations! What a good piece of business!”
You can watch Diller’s remarks starting 30-two minutes into this clip:
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