Michael Arrington was about two weeks away from announcing the CrunchPad, but there was a major problem with the management of the project. The CrunchPad prototype worked very well and worked for hours without crashing. Chandra Rathakrishnan, the CEO of the partner company working with Michael Arrington wrote him an e-mail saying that Arrington himself will no longer be part of the project due to a shareholder disagreement.
The shareholders decided to sell the CrunchPad through Fusion Garage without his involvement. Below is the e-mail that shareholders forwarded over to Rathakrishnan:
?We still acknowledge that Arrington and TechCrunch bring some value to your business endeavor?If he agrees to our terms, we would have Arrington assume the role of visionary/evangelist/marketing head and Fusion Garage would acquire the rights to use the Crunchpad brand and name. Personally, I don?t think the name is all that important but you seem to be somewhat attached to the name.? Arrington plans to file a lawsuit against Fusion Garage along with Rathakrishnan as a result of the failed project.
Intel and a retail partner (who I believe is Best Buy given that their CMO praised the device) helped facilitate the CrunchPad project this far. I would have loved to see the project come into fruition too because at the $300 price point that was set, the CrunchPad would have been an amazing netbook competitor.