AOL has bought two local startups, including one which claims AOL CEO Tim Armstrong as an investor. In a statement, the company said the additions of Patch Media and Going Inc. would bulk up its network of local services, which it said already make up the largest local network online. Armstrong said that local would be a “core area of focus and investment” for the company going forward, noting that the company already had an anchor in its Mapquest mapping service. Of the five areas the company is focusing on, Armstrong said that local “remains the largest white space.”
The cost of the acquisitions was not disclosed, although Kara Swisher at AllThingsD puts the price of each purchase at under $10 million.
Via his private investment company Polar Capital Group, Armstrong is an investor in local news platform Patch, which has five hyperlocal sites in its network. In a memo to employees, Armstrong said he would forgo any profit from his seed investment in Patch and would receive his seed investment in AOL shares instead once the company is spun off from Time Warner (NYSE: TWX). Going provides local events listings in 30 cities.
The full memo after the jump.