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Is there anything to stop Arrington from creating another news blog? He's losing properties like CrunchBase and the conferences, but why not take a few of the T
by jmtame 15y ago
Is there anything to stop Arrington from creating another news blog? He's losing properties like CrunchBase and the conferences, but why not take a few of the TC employees and keep writing news?
- arepb 15y agoYes, a noncompete. It will likely be something they leverage in order to do his earnout.
- ethank 15y agoNon-competes are flimsy in California, but a bit more on the "maybe" in Washington. It all depends on which employment law his agreement (and the employment agreements of the other writers, if they have them) are under. Anti-poaching is typically a term of the severance and is enforceable typically. EDIT: Corrected below, thanks! Non-competes do apply in acquisitions.
- mrkurt 15y agoNon-competes tied to acquisition earnouts are an entirely different beast than employment non-competes. They very much apply in California.
- jmtame 15y agoNon-competes for acquisitions in California are enforceable. It's one of the few exceptions where it can actually be enforced, but they usually expire after a year.
- callmeed 15y agoIANAL but my understanding is that an acquisition (eg AOL buying TC) is one scenario where a non-compete holds up, even in CA.
- _delirium 15y agoEven outside tech--- there was a Greek restaurant in Santa Cruz whose owner sold it, and then waited exactly N years (I forget what N equals) before opening a new restaurant, due to the noncompete.