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AOL to hand off Patch to JV, will own minority stake

  • AOL is forming a JV with investment firm Hale Global that will own its troubled Patch local news unit. AOL will have a minority stake in the venture, which will be operated by Hale. (PR)
  • Patch's future has been up in the air for a while, as AOL struggled to turn a profit on a business (local news/ad sales) for which economies of scale are hard to come by. 40% of Patch's workforce was laid off last summer, and hundreds of Patch sites shut down.
  • AOL/Hale state that going forward, Patch will focus on providing a "mobile-first experience with social integration," self-service ad tools, and location-targeted ad products, among other things.
  • The deal comes shortly after AOL unloaded ancient media player Winamp and streaming radio site Shoutcast.
Comments (6)
  • SafisKusai
    , contributor
    Comments (236) | Send Message
     
    Aol has been tidying its portfolio up and removing outdated and loss making operations while acquiring profitable and growing IP like HuffPo and adapt.tv

     

    Lots of speculation over a possible takeover by yahoo to shore up its core advertising businesses

     

    Patch sale has terms undisclosed but is an immediate positive as it plugs a leaky boat.
    15 Jan, 04:33 PM Reply Like
  • Jbgoose
    , contributor
    Comments (1056) | Send Message
     
    Do you mean for Yahoo! To acquire the best in class, most highly regarded AOL created advertising platforms? Would be a neat idea but why would their partners want to sell off such a wonderful asset when AOL does nothing but climb higher as they make it even better and more applicable ( pun intended )?

     

    And then we have the giving away of arguably the most relevant to the living world social media technologies, monetizing human behavior...

     

    Not jumping on you- just your post was the perfect comment to expand upon. I may rethink when to allocate money to AOL....
    15 Jan, 08:09 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4093) | Send Message
     
    The Cost of Winning -- The Story Behind Why AOL CEO Tim Armstrong Fired An Employee In Front Of 1,000 Coworkers: http://read.bi/1apROMD
    15 Jan, 07:33 PM Reply Like
  • SafisKusai
    , contributor
    Comments (236) | Send Message
     
    He really is a great executive. The ignorance of patch which he had an emotional attachment to and the public firing were sad marks but they should definitely not overshadow what he has been able to accomplish. That article is really good, but sooo long. It is a good way to understand the mind of the man who is trying to rebuild and original internet company.
    15 Jan, 08:47 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4093) | Send Message
     
    He should buy it and run it as a hobby.
    15 Jan, 08:51 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2500) | Send Message
     
    LOL @ Tim Armstrong"i am committed to patch" guess not http://bit.ly/1aqnTqF
    15 Jan, 09:12 PM Reply Like
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