AOL has acquired two local online media companies Patch Media Corp. and Going Inc. in an effort to further build on its current local network.
Patch is a local news platform focused on smaller towns and Going is a local platform for people to find and share information about things to do in a number of cites.
“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,” said Tim Armstrong, AOL’s Chairman and CEO.
Tim Armstrong
“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.”
Armstrong was an early investor in Patch he told AOL employees in a memo and recused himself from the acquisition process. He also said he stood to make a profit on the sale of Patch but decided to forgo that and just receive his seed capital in AOL shares when it separates from Time Warner. The separation is expected to be completed by the end of the year.
Patch currently has a presence in five communities and has plans in the works to add a dozen more by the end of the year.
Going is a local community catering to 20-somethings and is available in 30 U.S. cites with plans to add several more this year.
AOL’s network of local services is the largest online local network, reaching more than 54 million unique visitors per month.
