It sounds like he was putting his money where his mouth was, but now can't? Which is better, more useful, a blogger that understands and takes part in an industry, or one that strictly comments?
Yeah - It seems like a move to satisfy people that clearly won't be satisfied?
I mean, the rules to apply to everyone indeed - I think it's unreasonable to expect someone who is effectively an industry insider to not have conflicts of interest (conversely, it's reasonable to expect transparency about it).
Its not like his "money where his mouth is" approach worked. Look at the companies he invested in...they are very mediocre. A few social sites(one for dogs/one for dancing), a video site(seesmic), and an internet storage site. Nothing truly spectacular or ground breaking. Nothing that had any major success. I don't think he is yet to have an exit....I don't count edgio because that was a joke exit.
The only thing in his portfolio that was successful is Techcrunch
If that is true, that might be why he is divesting. I really don't think his investments are unethical, as long as they are always disclosed.
But his investments might slightly affect his objectivity, and get his credibility attacked. And since they are not success, there is no reason he should keep them.
frankly I think him having the ability to disclose his investments actually was beneficial for him. He was able to plug his sites a lot more times. i.e. any time he covered a competitor
Would it be better for an investigative journalist who specializes in the oil industry to partake in the oil industry, or strictly comment? Would it be better for, say, an individual reporting to congress on a certain industry, healthcare and such, to take part in that industry, or strictly comment?
Seeing as TC is his biggest investment, and the main purpose of the blog is to deliver unbiased, somewhat investigative, pieces on the startup sector, it'd probably be in his best interest to pull out of companies that might bring about future accusations of Michael and TC being biased.
The two most insightful essays I've read on oil came from a hedge fund that had a giant long position, and a commodity trader with a giant short position. You can fund a lot of research, and a lot of farting around with facts and figures, if you have billions of dollars riding on the outcome.
As long as it is mild and transparent I don't mind it. I don't know about the oil industry, but I do know if there is a group reporting to congress on Healthcare I would prefer it to be primary care doctors and hospitalists. I definately want the right people to speak and have a stake in the industry.
That depends on whether you think bloggers are, in the long term, journalists. It's fine if you don't think they are, but then you'd better pay up your newspaper subscription.
