AOL chief executive Tim Armstrong told investors this morning that he has “a lot of tens of millions of dollars” invested in Patch “and I would not put investors in any situation that I wouldn’t want to be in myself.” The average Patch roughly costs $150,000 to run, he says, while the average marketplace that it’s in has about $900 million of commerce.
There’s no tremendous interest in it from a media landscape other than to say a lot of – basically, gossip about Patch in terms of what has happened, what’s happening there and how is it performing and people love to talk about it. But the reality is Patch has gone from zero to – went up to number four in local – in one year on the Internet.
(I suspect he’s including this Feb. 8 Romenesko piece in his “gossip” reference.)
Business Insider is all over Armstrong’s remarks. Here’s today’s coverage:
* Armstrong passionately defends AOL’s decision to spend mllions on Patch
* “We removed a bunch people out of the company [and] our results got better”
* It looks like Armstrong’s ready to sue over patents