Techcrunch, Alarm clock and even Jason Calacanis weighed in on David Sifry’s departure. Jason extrapolated into some things that I don’t agree with completely, except with his suggestion that Web 2.0 companies try to make a profit, but I’ll leave that alone for now.
David Sifry today announced that he has stepped down as CEO of Technorati. While the search for a new CEO continues, Teresa Malo (CFO), Dorion Carroll (VP-Engineering), and Derek Gordon (VP-Marketing), will manage the day-to-day operations of the company. Sifry will become “Chairman of Technorati’s board”. What does it ultimately prove? It again clearly demonstrates that Internet experience is not the primary indicator of Internet executive future success.
Hello people. Technorati did a redesign that refocused on mainstream media as I noted in my earlier post the death of blog search. Then Technorati used tags to grow traffic from other search properties. As Arrington asked in early June “When will the Technorati traffic party end?” Apparently Google and others took notice of this and the party ended in July based on Alexa data – I’m surprised Michael did not discuss this at length today in his post actually. This dip exposed the payday to payday advertising dollar budgeting leading to the departure of Sifry and 8 others. It should be noted that this followed the dismissal of several other employees during the July 4th holiday.
Looking at a May 9th Mashable post, it seems that around $1 million was raised when it expanded a round of funding from 10.52 Million to 11.52 Million. It appears that Technorati was spending more cash than it was taking in, even before the traffic decline in July, based on the early July layoffs. The traffic decline in July only made that situation worse.
This leaves Technorati in the unenviable position of needing to generate new advertising dollars at a time when the engineering needs an overhaul it can’t afford. Repairs such as Typepad blog overcounting, flawed link metrics and many other flaws can not occur at this time.
In fact, someone suggested to me in a phone conversation today that perhaps they should shut Technorati off completely now and just sell it’s likely most valuable asset – a 301 redirect of the Technorati domain. The talk of taking Technorati public via IPO will likely be nothing more than that talk in David Sifry’s previous blog posts.(URL REMOVED)
So where is a blog searcher to go now?
Ask – They have recently revamped their offering dramatically and comment search is now combined with post search. It is an offering that is available directly on their front page.
Other players like Topix, if they were to index the blogosphere fully, could also emerge as an alternative that would properly mix news and blogs together demonstrating that most news is being lifted from blogs by the mainstream media.