Dive summary:
- In an effort to try to save Patch's local news digital publications, AOL may be closing the doors on the worst-performing sites; plans are to close or find partners for 400 of the business' 900 sites.
- Patch chief Steven Kalin will be replaced with AOL executive Bud Rosenthal.
- While Patch has doubled sales this year to $35 million, the sites cost between $126 million to $162 million annually to run.
From the article:
"Patch, which covers school-board meetings, local businesses and other neighborhood stories, has been a costly part of AOL's strategy to transform the dial-up provider into an advertising- driven content publisher."