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  "documentTitle": "Starboard Value | Activist Presentation Deck | 96 slides",
  "authorId": "starboard-value",
  "authorName": "Starboard Value",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2012-05-01 00:00:00",
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  "pageNumber": 36,
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  "notes": "Uses a quote as a primary evidence point to support the contradiction argument.",
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      "text": "Even if we hypothetically assume that Patch can generate $40 million of revenue in 2012, and that local businesses constitute approximately 25% of Patch’s ad slot placements at a 10% discount to rate card pricing, this would imply that the remainder of Patch’s ad sales are being sold at discounts of 96% to rate card pricing.",
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      "text": "The reality however, based on Patch’s actual results to date, implies that either a significantly higher percentage of volume is being sold through ad networks or that local advertisers are buying ad slots at steep discounts to Patch’s rate card pricing.",
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      "kind": "paragraph",
      "text": "We believe the majority of Patch’s ad slots are being filled with remnant AOL ad inventory at very low CPMs. This inventory could be placed on any AOL property, yet we believe it is pushed to Patch in order to justify continued investment in Patch.",
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      "kind": "quote",
      "text": "… I would estimate that 90-95% of national ads on Patch are being filled by ad networks at a CPM of $1 to $2….",
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      "text": "– Former Patch sales executive, March 2012",
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      "text": "(1) Assumes 25% of Patch’s ad slots are being filled by local advertisers at a 10% discount to rate card pricing. Assumes 100% sell-through rate. Uses Patch rate card dated Q4 2011 sourced from a Business Insider article published on February 23, 2012. Calculated as the product of discounted monthly rate card price, sell-through rate, and 25% local volume share. Assumes 863 Patches. Includes additional revenue from business / feature listings based on the average number of business / feature listings per Patch as sourced from L.E.K. Consulting’s analysis of individual Patches. At $40 million of revenue, this implies that the remaining ad slots are filled at a 96% discount to rate card pricing. (2) Based on interviews conducted by L.E.K. Consulting.",
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      "kind": "title",
      "text": "It appears AOL fills Patch ad slots with remnant AOL ad inventory",
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