What Are the Problems With Patch?

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Aug. 14 (Bloomberg) -- AOL CEO Tim Armstrong, making a rare public apology, sent a memo to employees saying he was sorry for the way he fired a staff member at a meeting last week. Cory Johnson has more on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

This is all about patch, the extensive -- extensive initiative to create local journalism and just not working.

He wanted to be profitable by the end of the year.

Not looking like it will be easy to get there.

The impending layoffs and cutbacks.

One of the employers was videotaping this supposedly private meeting with employees, listen to what jim armstrong said to the employee when he saw him with the phone recording making a video of the meeting of the company.

Take down -- if you think what is going on right now is a joke and want to joke about it, you should pick yourself up and leave today.

The reason is patch -- put that camera down.

If you are fired.

You are out.

Armstrong did not like the way he came off.

He issued this apology.

He said i am writing to acknowledge the mistake i made friday during the all-hands meeting when a publicly fired him.

It was an emotional this bonds -- an emotional response.

A tense meeting leading to a st.

-- tens ending and the ending of a job.

Feeling bad about that way -- the way it went down.

Let's look at the bigger picture and the problems with patch.

You wonder why he did not shut it down altogether.

Let's take this into context of what is going on in the media and the past week or so.

The sale of boston globe.

You have the sale of "washington post" to just bay's tho eff bezos.

The no clear -- local new advertising has gone on to facebook or google.

Local media has been hurting.

Patch is supposed to be an answer to that.

The annual cost probably close to 150 million.

Those kinds of losses aol says there will not put up with any more.

They're trying to find a partnership or other ways to keep the local tribalism alive.

The one-man gang approach is proven to be too expensive.

What about him armstrong himself?

-- tim armstrong.

We know he has seen some successes in other areas.

We know he is personally invested in the company.

What about his job and leadership?

Take of the big picture, you have to figure out what they're doing.

They are making this pit.

They have an enormous resources people that are still paying every month for dial-up access, instant messenger and e-mailed.

That business is big, but declining.

They're trying to use the revenue of that to create a new business.

In the midst of that pit, he has personally invested.

He has 1.3% of the company.

He has more of aol than carhl icahn has an apple.

I think his position is reasonably secure but could see that in the moves he regrets and apologize for after it became publicly known and released what he had said.

All right.

Thank you.

This text has been automatically generated. It may not be 100% accurate.

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