{
  "docId": "019de06f-3e34-7498-b7ab-93d3124b7448",
  "docSlug": "86d8f17ffaaed8be61f8b36e2c739da4",
  "documentTitle": "Starboard Value | Activist Presentation Deck | 96 slides",
  "authorId": "starboard-value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2012-05-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.2938006,
  "pageNumber": 40,
  "pageCount": 96,
  "prevPage": 39,
  "nextPage": 41,
  "slideType": "villain_critique",
  "function": "name_villain",
  "density": "dense",
  "nDataPoints": 21,
  "notes": "The slide uses a 'Target Case' P&L table to demonstrate structural unprofitability.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de06f-3e34-7498-b7ab-93d3124b7448/40",
  "deckHref": "/decks/019de06f-3e34-7498-b7ab-93d3124b7448",
  "deckJsonHref": "/decks/019de06f-3e34-7498-b7ab-93d3124b7448.json",
  "deckAnchorHref": "/decks/019de06f-3e34-7498-b7ab-93d3124b7448#slide-40",
  "components": [
    {
      "bbox": {
        "h": 0.1,
        "w": 0.85,
        "x": 0.08,
        "y": 0.25
      },
      "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.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "53ea9cf8-2e77-483c-8a8c-19000bfd611a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.85,
        "x": 0.08,
        "y": 0.18
      },
      "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,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1983769a-d372-44b6-9c15-d1fb8cc4664f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.8,
        "x": 0.1,
        "y": 0.78
      },
      "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",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "565118f3-8f97-4c43-945f-10381d55e664",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.85,
        "x": 0.08,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "Footnotes regarding data sources and methodology.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9088df08-c899-4f74-826a-3bdc29b720ad",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.7,
        "x": 0.16,
        "y": 0.38
      },
      "kind": "table",
      "text": "Patch P&L, Target Case table showing revenue, expenses, and operating loss for base and low case scenarios.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3f97aac7-d137-42e4-bc40-846fb4f9e8bb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.75,
        "x": 0.08,
        "y": 0.12
      },
      "kind": "title",
      "text": "We do not believe Patch is a viable business model",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c3ec04cd-79fa-4835-a50c-14d9eb5bf9c7",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "a651e597-c312-42d4-8145-f08ccb36f668",
      "evidence": "Exposing the unviability of the business model through P&L analysis and CEO contradiction.",
      "confidence": 0.8
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}