Tim Oren attempts to clarify the break up of PJ Media (or is it Pajamas?) into two parts based on entrepreneurialism first principles:

[from Due Diligence: PJ Media: E Unum, Pluribus]

It's somewhat axiomatic that a startup gets one bet. That is, one product or service, to one market. There are a lot of reasons, ranging from management bandwidth to capital requirements of forming two sales forces to conflicting demands from different sets of customers. They were all relevant in this situation.

Marc and Roger can attest that I, my partners, and other business plan reviewers banged on them to cut the initial set of business propositions down to one bullet point, and focus on it. But there were two legitimate business opportunities inside the plan, each with potential support from investors and backing from part of the team. Roger is notably a content guy, Marc is a systems architect and manager. After some further input from the market (in the form of potential investors, advertisers, partners and a few bloggers), it was evident that a Solomonic solution was the best one in this case. There are now two entities that will each attempt to serve the blogging community and its own set of customers.

Ok, fine. But on the other hand, many startups do in fact manage a balancing act of chasing several sources of cash, especially in the media space. I guess there wasn't enough social glue to hold the thing together, and too many folks were fighting for the money, which (unstated in Tim's piece) is what the VCs gave the combined company.