It’s ironic that 1 year ago today I resigned from Techcrunch following my Le Web 3 review on TCUK. Mike Arrington, the publisher of Techcrunch, has never forgiven me for that post and the aftermath that followed.
Ever since blognation was launched in July, Arrington has wanted to write the post - “blognation enters the deadpool”. Last week he nearly got his wish?
For the last 6 months Arrington has threatened to publish, private and confidential emails that were sent to him, knowing it would create fear uncertainty and doubt (FUD) around blognation within the angel/VC community, whether the content was factual or not! The merest whif of litigation whether true or not caused our the potential investors to run for the hills back in July.
Arrington had made it very clear that he would withhold this information from the public domain but like the Sword of Damocles he would use this information at the right time. From that point on (yet with hindsight I deeply regret) I decided to keep up the pretense that blognation had closed funding to put Arrington off the scent and to prevent him publishing, in order to buy just enough time to raise new funding.
Sadly someone in blognation sent Arrington an internal email which he decided to publish along with the previously damaging part of the now four month old email thread between Lee Wilkins and I. This spooked the new VC and further delayed the funding process. Knowing that Arrington would love nothing better than to hear news of editors leaving blognation, I chose not to tell the editors the funding was once again delayed. That was wrong and I should have been honest with the team.
Due to some of the vitriolic internal emails and skype chats around the time of the delayed funding, which have now been publically air’d by others, I decided to exclude 3 editors from the team chatroom because of their ill feeling. The 10 remaining editors were then informed about the state of funding and chose to stay actively blogging knowing that the VC in question was working through the process if somewhat delayed but certainly before Christmas.
Finally last week we had got the funding termsheet on the table, some 3-4 months later than planned but we were ready to sign on 10th December yet Arrington chose to publish a stolen confidential term sheet which scuppered the deal for blognation and ALL of the remaining editors at the 23rd hour.
Arrington knew very well what effect publishing the termsheet would have on any potential deal and thus the future of blognation.
Right now Arrington is the only person who knows who stole and gave him the confidential termsheet. Arrington is the only person who knows why he chose to publish it knowing that it would cause maximum embarrassment to the VC and potentially force them to withdraw the offer.
Well the matter has now been reported to Scotland Yard’s Internet Crime Unit : Case Number: LC986409807 and the IC3. What happens next I am not sure but the IP address of the person accessing my account will be located and that person will face both criminal charges and eventually substantial damages. As for Techcrunch other parties may still choose to start legal proceedings for damages, I cannot say anymore.
More importantly, where does that leave blognation? Following a number of discussions, yesterday and today, a revised termsheet proved to be unworkable. I have announced internally that I am stepping down from blognation and that the company will be put up for auction, like edgeio, to ensure that the idea and vision can go forward and that ALL the (cr)editors are rewarded for their loyalty and hardwork. (note: unlike edgeio none of the editors were employees)
I am pleased to say that there are already a number of potential buyers who have come forward. I am now seeking advise on how best to manage this auction process.
Do I blame Mike Arrington, not really, it’s just business. As a silicon valley shark, Arrington took an opportunity to remove a small potential competitor. The confidential information was voluntarily sent to him, he warned me he would use it and he did. Whether publishing it is ethical or legal that is another matter; ReadWriteWeb, Mashable, GigaOm and other blognetworks didn’t feel the need to publish hearsay and confidential news.
Do I blame Lee, Oliver or Debi, not really. They were angry with me and as bloggers they chose to use the blogosphere to publish confidential information and vent their spleen.
Personally I blame myself for not finding a VC quicker to close the deal and for not trusting the team when things were hard. My focus is now on closing blognation ltd, selling the platform and brand asset in auction and using the proceeds to pay the creditors much like edgeio and supporting the transition to a new owner before I say a final goodbye to the blogosphere.
P.S further updates will appear here.
December 13th, 2007 at 10:56 pm
Sorry to hear the news. I always thought the blognation ideas was great - a worldwide group of bloggers. How do i get information on the auction?
December 13th, 2007 at 11:18 pm
[…] Blames Arrington Sorta December 13, 2007 Posted by John Furrier in Technology. trackback In his last post as CEO of Blognation Sam Sethi tells his side of the story and hints of legal actio… I’ve been only following this story since the post about Sam’s unethical behavior as […]
December 13th, 2007 at 11:51 pm
[…] as Sam has posted today, things at blognation are changing and moving on–and so must […]
December 14th, 2007 at 12:22 am
[…] Another shaky startup is PodTech which Robert Scoble has been creating video podcasts for. He’s reportedly leaving the company in 2008 for greener pastures. He’ll be fine, but PodTech speculation will surely continue. […]
December 14th, 2007 at 12:31 am
Sorry to hear Sam, I hope you find a buyer as the concept is spot on.
December 14th, 2007 at 12:54 am
sorry to hear about all his Sam. I understand how disappointing and draining it must be. In the true American tradition though - learn from the mistakes - takeca break - then move on to the next thing.
December 14th, 2007 at 1:08 am
Sorry to hear of your troubles.
The Blognation profile on our small mobile technology company introduced us to some very interesting people and the concept clearly works.
Thanks and better luck next time…
December 14th, 2007 at 1:57 am
Blognation gave us our momentum… hopefully your guys will continue.
December 14th, 2007 at 2:08 am
[…] you read Sam Sethi’s post about the death of BlogNation? He’s called Scotland Yard in the find and arrest whoever forwarded the VC term sheet to […]
December 14th, 2007 at 3:11 am
[…] Update: Sam Sethi responds. […]
December 14th, 2007 at 3:38 am
[…] finally folded today. I have not idea which side of the story is true and which parts are false, but it doesn’t […]
December 14th, 2007 at 3:53 am
[…] http://updates.blognation.com/2007/12/13/heres-to-you-mrs-arrington-goodbye-and-good-luck-startups/ […]
December 14th, 2007 at 4:37 am
[…] though Sam Sethi is out of the picture, Blognation will be back and it will be much more significant. It’s a […]
December 14th, 2007 at 4:40 am
Why couldn’t you start a blog empire without funding like the rest of the world? There is no easy road, there are no free meals.
You’re going to spew all that hate and then say, I wish I could’ve got financing earlier! Dang! My bad. Nevermind all the lies and deception. If I could’ve gotten that financing, it never would have happened. Dang. Everyone else’s fault but mine. Dang.
This is very hard to read, you know.
December 14th, 2007 at 5:01 am
I’m sorry to see you step down from blognation.
I wish you the best of luck in all your future ventures.
Maybe this will show people what a prick Arrington is and to avoid his blog like the plauge.
December 14th, 2007 at 5:14 am
[…] who split with Sethi in a nasty and public way exactly a year ago, an irony that Sam notes in his post on the end of his dream. Like Techfold, I have to say this is one of the most mealy-mouthed and […]
December 14th, 2007 at 5:16 am
“I decided to keep up the pretense that blognation had closed funding to put Arrington off the scent and to prevent him publishing, in order to buy just enough time to raise new funding.”
Maybe the best way for you to live an honest life, imagine all your thoughts are blogged on Techcrunch in realtime.
December 14th, 2007 at 5:35 am
You seem quite obsessed with Arrington. What a soap opera you two have made… why all the references to edgeio? It read like you were trying to say: “see, he’s a failure too.” Seems to me like you got some growing up to do. Good luck and farewell.
December 14th, 2007 at 5:57 am
[…] - создатель некого блоггерского супер-проекта Blog Nation винит основателя TechCrunch Майкла Аррингтона в срыве […]
December 14th, 2007 at 6:26 am
[…] to shift all blame on to TechCrunch’s Michael Arrington, while minimizing his own stupidity in concealing the company’s financial situation from the largely unpaid editors, without whom Blognation is […]
December 14th, 2007 at 8:38 am
Wow…Arrington’s a SCUMBAG! A FAT & ugly scumbag!
December 14th, 2007 at 8:59 am
Arrington you a bastard douche bag for doing this, You an TC should go to hell.
December 14th, 2007 at 10:17 am
[…] blog-redakt
December 14th, 2007 at 10:35 am
[…] Sam Sethi, former TechCrunch UK editor, announced the closing of his Blognation blog network today. Hey lays 100% of the blame for the failure on me […]
December 14th, 2007 at 11:44 am
it is a shame, you did a fucking good job making one of the best blog around able to compete with the best .
December 14th, 2007 at 12:18 pm
[…] a post on Blognation blog, Sam Sethi has announced that he is to step down from Blognation and that the […]
December 14th, 2007 at 12:24 pm
A failed business venture is never good. Sleep - eat - vacation - off you go again!
December 14th, 2007 at 1:47 pm
[…] die Story recht kurz zu machen, worum es geht: Blognation ist ein mehrsprachiges Blogportal, das sich mit Webstartups rund um den Globus […]
December 14th, 2007 at 1:53 pm
Hoping that someone out there sees the value in acquiring blognation; no doubt whoever it is, will continue to needle TC.
December 14th, 2007 at 2:02 pm
This is a bad news,above all the Nanopublishing market: i hope that Blognation continue!
December 14th, 2007 at 2:40 pm
[…] Nachdem jüngst bekannt wurde, dass Blognation die eigenen Blogger nicht bezahlen konnte, ist es nun offiziell: Blognation-Gründer Sam Sethi, der keine Finanzierung für Blognation auftreiben konnte, verkauft das Blognetzwerk. […]
December 14th, 2007 at 2:46 pm
[…] um Blognation wurde durch Techcrunch genüsslich begleitet. In einer Blogpost vom 13. Dezember ‘Here’s to You Mr(s) Arrington, Goodbye and Good Luck Startups‘ verkündet Sethi das (vorläufige) Aus für Blognation und macht gleichzeitig […]
December 14th, 2007 at 3:15 pm
[…] Arringtons story is here: The Fact and Fiction of Sam Sethi Sam Sethi’s story is here: Here’s to You Mr(s) Arrington, Goodbye and Good Luck Startups […]
December 14th, 2007 at 4:51 pm
[…] joined the dead pool, there was a certain amount of uncertainty in the story. Today the story is confirmed, amidst high drama, and everyone and their brother chiming […]
December 14th, 2007 at 6:34 pm
If you can’t stand the heat, stay out of the kitchen friend
And close the door to the laundromat…dirty clothes don’t look good in public
December 14th, 2007 at 6:51 pm
To balance off the scales here’s the other side of the coin http://www.crunchnotes.com/?p=438
December 14th, 2007 at 7:03 pm
You admit to lying to your own staff. You exclude your dissenting editors from chatrooms. You run a business with zero profits. You blame others for your failures.
Dude, you deserve to fail. Any leader who lies and cheats to manipulate people to work without pay and canot foster an inclusive team spirit lacks the character to succeed. Any businessman who cannot win the confidence of investors lacks the acumen to create wealth. Businesses should be financed by old-fashioned profits, not VC funding.
You’re not a good businessman, face it. And apparently not a very good person either. Karma.
December 14th, 2007 at 8:05 pm
Arrington is the most irritating blogger I have come across. Accepted TC has one of the best contents in the blogosphere, but man, this guy has got real halo of ego around him. He picks to hate somebody and that’s it..He hates them to death and shows this in every post he makes relating to the subject.
Sometimes I feel a kind of elation that Edgeio stripped him off..He deserves that..
December 14th, 2007 at 9:43 pm
It’s good to see you step down from blognation and step down from the blogosphere in general.
I hope the editors you betrayed get some kind of refund for all the damage you made to them. It’s also pretty lame to see you trying to trash Arrington for your own fault.
Any person with a little understanding of internet business could have told you that it’s a bad idea to (claim to) pay 12 editors that write blogs without traffic.
Do you know how TechCrunch was created? It was the hard work by Mike Arrington. He just worked all day every day in the week, until he was able to pay contributors.
The same goes for GigaOm, which in the beginning was just Om Malik, too. He took funding when he created some value, some traffic and could use the money to increase that.
Man, you’re not only a bad person, you’re also a bad business man.
December 14th, 2007 at 11:27 pm
[…] Blognation founder Sam Sethi announced he closed Blognation, as he couldn’t find in time funding for the company. This is sad, as I believe he had a […]
December 15th, 2007 at 2:13 am
[…] story launches a sh*tstorm and eventually it comes out that BlogNation is closing down for good. Sam Sethi responds by basically blaming everybody but […]
December 15th, 2007 at 6:17 am
Sam, your first duty in this post was not to explain why none of this is your fault, but to apologise publicly to the bloggers who you have screwed through non-payment (and who called you out publicly on it.)
I know this is tough on you and unfortunate, but you are the boss. The buck stops with you. Your fist duty is to your staff.
December 15th, 2007 at 1:30 pm
Cannot believe people actually wishing Sam the best. Are they for real!? Sad thing is for people like this, this is pathological. He has no empathy, probably doesn’t care, and sleeps well at night. Waiting for the karma.