TVNewser FishbowlDC AgencySpy TVSpy LostRemote PRNewser SocialTimes AllFacebook 10,000 Words GalleyCat UnBeige MediaJobsDaily

AOL Sunk $40 Million Into Patch in First Quarter: Expects Big 2011 Loss

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 ForbesJeff 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.

Mediabistro Course

Get a Literary Agent

Get a Literary AgentStarting August 6, learn how to find the right agent for your book and write a query that will get the deal done! Taught by Barbara Clark, a book agent and publishing consultant, you will learn the best methods for finding a literary agent, the proper protocol and etiquette for seeking literary representation, how to send queries and more. Register now!