AOL has passed Patch.com over to Hale Global, a firm that specializes in turnarounds. AOL chairman Tim Armstrong has been sentimental about the fate of Patch.com because he was a co-founder of the company.
Patch will become a property of a new joint venture that is controlled by Hale and AOL will get a minority stake. Last month, AOL said that Patch had a number of partnership conversations with partners and received interest at a national/regional/local level.
Armstrong promised investors that he would find a way to solve the problem of Patch by the end of 2013. Patch costs more than what they make.