AOL sells most of news website Patch to Hale Global

patch

AOL officials announced today it’s unloading the majority of Patch, its nationwide hyperlocal news organization, to investment firm Hale Global.

The deal will come to fruition in the first quarter allowing Hale Global to own the majority of the corporation while AOL holds onto minority interest.

Tim Armstrong became AOL CEO in 2009 and invested hundreds of millions of dollars into Patch by hiring local reporters and editors and sales people for the news websites.

Here is the AOL press release:

Companies Create Joint Venture to Pursue $152 Billion Local Media Market

AOL Inc. (NYSE: AOL) and Hale Global announced today the creation of a joint venture to run Patch, the premier platform for local news and information in the United States that serves more than 16 million people monthly** with a network of more than 900 sites. Under the terms of the agreement, AOL will contribute Patch into a new limited liability company, which will be operated and majority owned by Hale Global.

Hale Global brings substantial experience in the areas of online media, local marketing, mobile, retail, and advertising and has an impressive track record for re-defining company visions and creating long-term growth from the companies they operate.

AOL and Hale Global believe residents of all communities should be empowered through technology to stay connected and informed. The companies are committed to re-launching Patch as an efficient platform that allows citizens and businesses to create and share locally-themed news and content — not just with those in their own communities but to the wider world.

Among the concepts planned for Patch moving forward:
Technology solutions to make community participation seamless
Mobile-first experience with social integration
National, regional, and local advertising self-service tools
Geo-targeted advertising products

“We are committed to bringing users, local businesses, writers and advertisers together into a Patch experience full of innovation and growth,” said Charles Hale, CEO of Hale Global. “Along with AOL, we are committed to taking the necessary steps to ensure Patch remains a vibrant part of the community.”

“We are impressed by the commitments from Patch and AOL to serve communities and advertisers and look forward to working together to achieve our shared long-term vision.”

“Patch is an important source of information for communities, and the joint venture we created has a unified mission to provide local platforms and hyper-local content,” said Tim Armstrong, Chairman and CEO of AOL. “AOL has established leading positions in attractive scaled opportunities including video, brands, advertising and subscriptions by making bold bets and strategically investing in these high-growth opportunities — and local will be a growth space during the next decade of the Internet.”

“Hale Global has a strong track record of operational excellence and platform experience, and we are looking forward to working closely with them on Patch,” Armstrong said. AOL will retain a minority interest in Patch.

The companies anticipate closing the joint venture early in the first quarter of 2014, subject to customary closing conditions. Financial terms of the transaction were not disclosed.


News
Entertainment
Sports
Lifestyle
News

OMG! Exercise can make skin (and butt) look…

A moderate exercise regime can turn back time and actually reverse the skin's aging process, according to new research. The study showed that a minimum…

News

Mets mascot Mr. Met target of Bill Clinton…

Mets mascot Mr. Met has told how he ended up in the crosshairs of a Secret Service sniper rifle. The man behind the Mr. Met…

International

Jews in eastern Ukraine ordered to register, Kerry…

Secretary of State John Kerry condemned reports that Jews in eastern Ukraine had been ordered to register with the authorities "or suffer the consequences."

National

Chelsea Clinton pregnant with first child

Chelsea Clinton is pregnant with her first child.

Television

'Scandal' recap: Season 3, Episode 18, 'The Price…

Sally is Jesus, Olivia caused global warming, and Mellie's still drunk. Let's recap the Scandal finale. A church full of Washington insiders is about to…

Movies

Review: 'Transcendence' is not stupid but sometimes lacks…

The cyberthriller "Transcendence" explores artificial intelligence, nanotechnology and other ethical quandaries, but has too much ambition, if anything.

Television

Dick Wolf to bring fictionalized world of 'Law…

A&E has ordered a pilot called "D.O.A." from "Law and Order" mastermind Dick Wolf that will focus on real detectives reexamining cold cases. A trio…

Television

Shane West talks WGN America's 'Salem'

The actor on history lessons, a new network and showing his butt.

MLB

MLB video highlights: Red Sox score two in…

Lester shines in Red Sox win over White Sox

Sports

2014 Boston Marathon preview: Elite American, International runners…

2014 Boston Marathon: Elite American, International runners to watch

NBA

2014 NBA Finals odds: Ranking which playoff teams…

2014 NBA Finals odds: Ranking which playoff teams have the best shot at a championship. The Thunder, Clippers, Heat and Rockets lead the way.

NFL

2014 Patriots, full NFL schedule release date announced

2014 Patriots, full NFL schedule release date announced

Style

Light-up nail art syncs with phone

This Japanese technology syncs light-up nail art with your phone.

Wellbeing

Why is dance cardio taking off in NYC?

Instructors at some of the city's hottest classes explain why.

Travel

Earth Day travel in the Florida Keys

See why this eco-friendly destination deserves your attention.

Tech

Sorry, Facebook — FarmVille goes mobile with 'Country…

Zynga has released a version of the hit "FarmVille" tailored for smartphones and tablets in the hope of reaping a bumper crop of players.