After more than five years of reporting on school-board meetings and community bake sales, AOL Inc.’s Patch is now at the center of another story: whether the company’s bet on local news can be profitable.
AOL Inc. will replace the head of its struggling Patch local-news operation and plans to close or find partners for 400 of the unit’s 900 community websites as it looks to cut jobs, two people familiar with the matter said.
AOL Inc. agreed to buy the video- advertising startup Adap.tv for $405 million, marking its biggest acquisition since Chief Executive Officer Tim Armstrong led the spinoff of the company from Time Warner Inc. in 2009.
AOL Inc. is eliminating about 500 positions at its struggling Patch local-news business, or close to half of the division’s more than 1,000 employees, according to a person with knowledge of the decision.
AOL Inc. Chief Executive Officer Tim Armstrong persuaded shareholders to reject an activist investor’s bid to shake up the board, overcoming one of his toughest challenges since taking charge of the Internet company.