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  "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",
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  "pageNumber": 31,
  "pageCount": 96,
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  "density": "dense",
  "nDataPoints": 4,
  "notes": "Uses direct quotes from earnings calls to highlight management's failure to accurately forecast costs.",
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      "kind": "callout",
      "text": "What metrics was the Board looking at to justify these increases in spending on Patch? Did the Board have any oversight or control around budgeting?",
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      "kind": "chart",
      "text": "Management Estimates of Annual Patch Costs",
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      "kind": "list",
      "text": "Q1 2010 Call: \"And I think we are still probably disclosing $50 million [of investment in Patch] and we’ll continue on that path until we see a need to change that number.\" – CEO Tim Armstrong, 4/28/10 (emphasis added)\nQ2 2010 Call: “... we expect to allocate more than the $50 million originally anticipated to Patch....” – CEO Tim Armstrong, 8/4/10\nQ3 2010 Call: “The sequential increase in local spend was due primarily to the dramatic increase in the pace of our rollout of Patch into towns across the United States...which would put our run rate expense related to local at approximately $30 million per quarter going into 2011.” – CEO Tim Armstrong, 11/3/10\nQ4 2010 Call: “The faster than anticipated rollout put our run rate expenses for Patch at approximately $40 million at the end of the quarter, which is higher than the $30 million quarterly run rate we talked about on our last call....” – CFO Arthur Minson, 2/2/11",
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      "text": "Annual Patch Costs: $160",
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      "kind": "quote",
      "text": "“And I think we are still probably disclosing $50 million [of investment in Patch] and we’ll continue on that path until we see a need to change that number.” — CEO Tim Armstrong, 4/28/10",
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      "kind": "title",
      "text": "We believe AOL has consistently underestimated the costs of operating Patch",
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      "name": "Cost Of Inaction",
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      "evidence": "The document highlights the costs of inaction and the need for change in AOL's operations and strategy",
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      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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      "evidence": "The document reveals the truth about AOL's Display business and Patch, highlighting inefficiencies and losses",
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