I know, I know, hyper-local news doesn’t seem all that exciting. Then again, America Online just paid $10 million to buy hyper-local news site, Patch, and another $10 mill for Going, writes Kara Swisher in BoomTown.
I don’t know about you, but that kind of money sounds EXCITING to me. Not that I ever planned on getting rich, but in today’s economy I’ve been paying a wee bit more attention to that bottom line thing.
A couple months ago, I actually tried contacting Patch about whether they were going to make their software available to folks hoping to start local sites. I was one of more than 230 people who submitted inquiries, according to a press release in Swisher’s post. And now I know why I never heard back from them; they were probably too busy cooking up the sale!
Patch seems to be using journalists with professional experience, but I’m completely unclear about the company’s pay structure. It’s a shame Patch never responded to my earlier inquiry.
I am a bit surprised by the $10 million price tag. After all, there is not that much local advertising on the site. Of course it doesn’t hurt that Patch’s principal investor was AOL’s new CEO, Tim Armstrong. And since he’s heavily restructuring the beleaguered company, perhaps he has a plan in mind.
Here’s what Armstrong says in the AOL press release:
“Local remains one of the most disaggregated experiences on the Web today – there’s a lot of information out there but simply no way for consumers to find it quickly and easily. It’s a space that’s prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest. Going forward, local will be a core area of focus and investment for AOL.”
The upshot? Maybe we should keep our eyes peeled for job opportunities at AOL soon.
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