Why core blogosphere companies are sold too early?
There are rumors nowadays about the possibility of Technorati being sold to Yahoo or Google and the large volume of commenting made me think whether companies such as Bloglines (sold to Ask Jeeves) or now Technorati are looking to exit the game too early.
I do think that it all depends on the promise RSS creates for small companies that can drive to greatness and independence and innovative spirits and if we will see RSS as something to be a medium size opportunity without a real change in its winds then being bought by a large rival seems very reasonable.
This trend if it is at all of small companies that are today the core of the blogosphere being acquired for rather "small" returns will for sure diminish the ambitions of other entrepreneurs to engage in pure RSS ventures. As well as killing the ambitions of already sceptic VC to bet on this playground. Many ventures needed to build the new Web 2.0 infrastructure that can change forever the user experience with the internet will not happen.
It is not that I am implying that when Google or Yahoo will own Technorati for example then RSS and blogging will die. Still I do think that due to the higher pressures of the giants to satisfy their hungry stock market audience the owned company direction will be more towards immediate profitability and less towards a responsible view on constructing the blogosphere such as the one a small company can take "foolishly" and ingeniously.
This responsibility is what creates innovation, things that really make a change and not just immediate cash cows.