For AOL, a Costly Gamble on Local News Draws Trouble

Patch.com, a network of small-town news sites owned by AOL Inc., has emerged at the center of a tug of war over the Internet company’s future.

The high cost of running the local-news sites has fueled a campaign by dissident investor Starboard Value LP against AOL Chief Executive Tim Armstrong’s strategy of investing heavily in online content.

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About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Web Sites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other Web sites, and for clarity’s sake, all outside posts run against a pink background.

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Voices is edited by Beth Callaghan.

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