Not sure how much longer we’ll have a Carlsbad Patch to kick around, but as long as we do it won’t be owned by AOL.
According to a story on CNBC today, AOL CEO Tim Armstrong (above right) has decided to sell a majority share of Patch to Hale Global, an investment fund.
Patch, AOL’s big bet on local news, has been a big problem for the company. In 2012 Patch had a loss of $35 million, and last year after hundreds of layoffs and shuttering many of its sites, it still didn’t turn a profit, despite a promise that it would by year-end. . . The terms of the deal were not announced, but AOL is effectively contributing Patch, while Hale contributes cash.
AOL will still be a minority owner, but they won’t have to take all the loses. Nice how there continues to be a market for businesses that lose money isn’t it? Guess everyone needs a write off here and there.
[Link: CNBC]
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