While rumors have circulated for days, it seems the dust is finally settling around Blognation, and what is being said publicly is even scarier than the rumors.
Sam Sethi, head of Blognation, and former TechCrunch UK writer, has announced that he is stepping down from his post with his network due to a lack of funding. All of this comes in the wake of leaked internal information that was published by Michael Arrington of TechCrunch.
In Mr. Sethi’s version of the details, it seems that Mr. Arrington may have had somewhat of a personal vendetta against the smaller blog network. He reportedly had acquired leaked internal emails as long ago as July of this year. In communiqués with Mr. Sethi, it appears Mr. Arrington threatened to publish these emails in an attempt to damage the newer blogs chances at receiving venture capitalist interest.
Mr. Sethi made some missteps, it would seem, in his attempts to diffuse the situation by claiming he had already received the needed funding. This turned out to be for naught as someone leaked more information to Arrington recently that included the term sheet of what the venture capitalist was proposing.
With the terms out for the public to see, the investor pulled their offer, and the fate of Blognation was sealed, leading to Mr. Sethi to step down. The assets of the company will now be auctioned off in an attempt to pay outstanding creditors. There has also been an investigation launched via Scotland Yard to uncover the source of the leaked term sheet.
This story, with the facts as presented by Mr. Sethi, raises all sorts of questions as to the ethics that exist inside of the blogosphere. Are we businesses or journalists first? If we are journalists, do normal journalistic ethics apply to us, or are we playing by an, as of yet, undetermined set of new rules?
We have attempted to contact Mr. Arrington for comment, but as of publication time, we had not received a reply.