AOL is buying two small websites which specialise in local content in an attempt to better target the market for local news.
AOL confirmed the purchase of Patch Media and Going for less than USD10m each on June 11. Patch was partly owned by AOL CEO Tim Armstrong, but in a memo to AOL employees, he says he has removed himself from the acquisition and will not make a profit from the deal.
Armstrong says: ?Going forward, local will be a core area of focus and investment for AOL.? AOL’s local operations already include City Guide, Yellow Pages, MapQuest and Moviefone.
The purchases come as Time Warner plans to spin-off AOL in a move to provide both companies with ?greater operational and strategic flexibility?. Time Warner plans to complete the separation by the end of the year.
StrategyEye's related companies: Yellow Pages Group, MapQuest, AOL, Time Warner
