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  "docSlug": "86d8f17ffaaed8be61f8b36e2c739da4",
  "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": 44,
  "pageCount": 96,
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  "slideType": "villain_critique",
  "function": "name_villain",
  "density": "overcrowded",
  "nDataPoints": 8,
  "notes": "Uses a series of bulleted arguments to dismantle management's claims regarding revenue and profitability.",
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      "kind": "callout",
      "text": "We do not believe Patch is a viable business model.",
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      "kind": "list",
      "text": "We do not believe Patch can achieve its recently committed goal of “run rate profitability by the end of 2013.” This optimistic outlook still results in Patch losing an approximately $150 million or more between now and the end of 2013.",
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      "text": "Even at Patch’s targeted revenue model of selling 80% of ad slots to local advertisers, we estimate Patch would still lose between approximately $20 million and $60 million per year.",
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      "text": "We seriously question whether AOL is pushing ads to Patch that could otherwise be used on any other AOL property in an effort to inflate Patch revenue to justify continued investment.",
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      "text": "Further, how can profitability at Patch be achievable when: Only approximately 20% of ad placements on Patch are filled by local advertisers; 70% of local advertisers do not renew their contracts; National advertisers do not value Patch?",
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      "text": "On the Q1 2012 earnings call, Tim Armstrong stated that he “hopes” AOL can achieve over $40 million of revenue at Patch in 2012. Even at that revenue level, we estimate Patch will still lose approximately $79 million to $133 million per year.",
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      "text": "We do not believe the recent commitment to achieve profitability by the end of 2013 is realistic. We believe it is merely a tactic to attempt to gain support for Patch without any financial analysis to support it.",
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      "text": "Starboard Value estimates and source citations for the data points provided.",
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      "kind": "title",
      "text": "A strategy of “hope” for Patch is not acceptable",
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