Wow. AOL’s first quarter results are out and it looks like the company is spending some serious cash to get Patch up and running. We’re talking $40 million in the first few months of the year alone. As Forbes‘ Jeff Bercovici writes, “No wonder AOL is so eager to get folks writing for free for Patch.”
Bercovici was in on the earnings call and reports the company will likely lose $100 million on Patch in 2011. Company executives refused to answer Bercovici’s question about how much revenue Patch brought in against the company’s $40 million first-quarter investment. We here at Fishbowl LA have the answer though: not enough.
Patch’s free blogger roundup drive is scheduled to end today. No word yet how many suckers…er citizen journalists they recruited.