AOL buys local Web companies Patch Media, Going

June 11, 2009 12:49:15 PM PDT
AOL is expanding its reach deeper into the market for locally oriented Web sites with the purchase of two companies that build community-based sites. AOL purchased Patch Media Corp. and Going Inc., which operate Web sites tailored to different cities, for less than $10 million apiece. New York-based Patch runs sites offering local news and general information. Going, which is based in Boston, runs sites revolving around local events.

The acquisitions announced Thursday are the first since former Google advertising executive Tim Armstrong joined AOL as chief executive in April.

Armstrong is an investor in Patch. AOL says Armstrong will not earn a profit from the deal but his initial investment will be repaid in AOL stock once Time Warner Inc. spins AOL off later this year.

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