{
  "docId": "019dd923-622b-71dc-a6d9-afa084f9cd73",
  "docSlug": "eb305b39ce19",
  "documentTitle": "AOL, Inc. (AOL)",
  "authorId": "03_Starboard_Value",
  "authorName": "Jeffrey C. Smith",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2012-05-23 00:00:00",
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  "pageNumber": 40,
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  "notes": "Includes a CEO quote to reinforce the lack of monetization strategy.",
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  "slideHref": "/slides/019dd923-622b-71dc-a6d9-afa084f9cd73/40",
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  "components": [
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      "kind": "callout",
      "text": "Even at AOL's target revenue model of selling 80% of ad slots to local advertisers near rate card pricing, we estimate that Patch would still lose approximately $20 million to $60 million per year.",
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      "kind": "list",
      "text": "Patch is currently selling less than 20% of its ads to local advertisers, which is far below its 80% target. Further, AOL is selling these ads at a discount to rate card.\nEven if Patch was able to increase local full fee ad slot sales to 80%, which we believe is highly unrealistic, the business would still lose money based on our estimates.",
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      "text": "Operating Loss: $61.9M",
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      "kind": "paragraph",
      "text": "Even at AOL's target revenue model of selling 80% of ad slots to local advertisers near rate card pricing, we estimate that Patch would still lose approximately $20 million to $60 million per year.",
      "attrs": null,
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      "kind": "quote",
      "text": "…on the monetization of Patch… I would just say when we started the product in general, we started it without monetization in mind….",
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      "kind": "quote",
      "text": "…on the monetization of Patch… I would just say when we started the product in general, we started it without monetization in mind… — CEO Tim Armstrong, 2Q10 conference call, 8/4/10",
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      "kind": "source-note",
      "text": "Footnotes regarding data sources and methodology.",
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      "kind": "table",
      "text": "Patch P&L, Target Case table showing revenue and expense projections leading to operating losses.",
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      "kind": "title",
      "text": "We do not believe Patch is a viable business model",
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      "from": 7,
      "name": "Cost Of Inaction",
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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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