{
  "docId": "019dd923-622b-71dc-a6d9-afa084f9cd73",
  "docSlug": "eb305b39ce19",
  "documentTitle": "AOL, Inc. (AOL)",
  "authorId": "03_Starboard_Value",
  "authorName": "Jeffrey C. Smith",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2012-05-23 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 28,
  "pageCount": 96,
  "prevPage": 27,
  "nextPage": 29,
  "slideType": "villain_critique",
  "function": "name_villain",
  "density": "dense",
  "nDataPoints": 9,
  "notes": "The slide uses a table to contrast Patch's performance against the broader Display segment, highlighting the -1131% margin.",
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "kpi_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-afa084f9cd73/28",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-afa084f9cd73",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-afa084f9cd73.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-afa084f9cd73#slide-28",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Despite significant investment, we believe Patch has minimal revenue and massive losses.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-5376-7749-9ecc-c1ef43cb62f4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.72,
        "x": 0.05,
        "y": 0.85
      },
      "kind": "disclaimer",
      "text": "(1) For Patch, we arrived at our cost estimate in 2010 based on the following statement... (2) Calculated based on $7 million to acquire Patch in June 2009, $75 million of investment in 2010, and $160 million of investment in 2011.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "51949ec4-3d34-43bd-9469-32351c7e7086",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.85,
        "x": 0.08,
        "y": 0.22
      },
      "kind": "list",
      "text": "AOL acquired Patch, a company that AOL's Chairman and CEO Tim Armstrong co-founded, for $7.0 million in cash from an investment company that Mr. Armstrong also founded. Since then, Patch lost approximately $75 million in 2010 and $147 million in 2011. AOL has spent a total of $242 million to acquire and build Patch.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a712c47d-5373-4af9-aada-720989dcdade",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Adj. EBITDA Margin: -1131%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-5376-7749-9ecc-c93fc2d5295b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Ending Q1 2011, there were 33 Patches that had above $2,000 per month in revenue. Ending Q4 2011, there were 401 Patches above $2,000 per month in revenue. — Company's Chief Financial Officer",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-5376-7749-9ecc-c50b865619b4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.66,
        "x": 0.17,
        "y": 0.398
      },
      "kind": "table",
      "text": "CY 2011 Display Operating Performance. Display - Free Premium Content: $560, ($398), -71%. Display - Patch: $13, ($147), -1131%.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f9e185cb-8010-4426-b500-1c8db07fb46f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.78,
        "x": 0.11,
        "y": 0.685
      },
      "kind": "title",
      "text": "Despite significant investment, we believe Patch has minimal revenue and massive losses.",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f6823b57-8d31-4328-b74a-a8139c01177b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.86,
        "x": 0.07,
        "y": 0.12
      },
      "kind": "title",
      "text": "We believe Patch is the largest single contributor to losses in Display",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9999137e-11a9-4570-8b76-7a5e996b90d4",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "d9bcb7a8-e1b2-4c44-8faf-372d5e0d1108",
      "evidence": "Highlights conflict of interest in acquisition and poor financial performance.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [],
  "loops": [
    {
      "to": 82,
      "from": 7,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "5f7759ea-34c0-4890-95eb-4e615002289f",
      "evidence": "The document highlights the costs of inaction and the need for change in AOL's operations and strategy",
      "position": 0,
      "objective": "Highlight the costs of inaction and the need for change",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.8,
      "description": "Quantify what happens if the audience does nothing"
    },
    {
      "to": 40,
      "from": 13,
      "name": "The Reveal",
      "slug": "05-the-reveal",
      "bestFor": "Product launches, strategic pivots, unexpected findings",
      "matchId": "72c3326c-e9da-478f-9331-9b5ff9d74c6d",
      "evidence": "The document reveals the truth about AOL's Display business and Patch, highlighting inefficiencies and losses",
      "position": 1,
      "objective": "Reveal the truth about AOL's Display business and Patch",
      "structure": "Setup the Question -> Build Suspense -> The Big Reveal",
      "confidence": 0.7,
      "description": "Build mystery and anticipation, then deliver a surprising or powerful conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}