Back to the Future: AOL Goes Local With Two Acquisitions (Including CEO's Company)

Adding the final leg of its new strategy to reinvigorate AOL, the Time Warner online unit said it was buying two small local start-ups, Patch Media and Going. Each acquisition–which focus on hyperlocal community news (Patch) and events (Going)–is small, about $10 million. Ironically, local has previously been a big arena for AOL, which launched its Digital City unit with great fanfare more than a decade ago. AOL still runs Digital City, as well as its CityGuide listing offering. But, in a move that will surely be scrutinized, Patch is a company whose principal investor has been AOL’s new CEO Tim Armstrong. AOL declined to say how much he had invested in the company, but sources said it was less than $5 million.
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Kara (and Walt) Visit DEMOfall!

Walt Mossberg and BoomTown are in San Diego for DEMOfall, one of two big tech start-up demo conferences taking place this week (the other is TechCrunch50 in San Francisco). At both conferences, a passel of start-ups come to show off their wares to an audience of press, venture capitalists and one other. Walt and I also appeared here this afternoon onstage in what was called “Head-to-Head,” a feature which we hope to debut on this site soon.