Recapping the day's news and newsmakers through the lens of CNBC.
One of the toughest executive decisions: how long to hope that a few tweaks will turn around a money-losing venture. Business professors will have a new case study now that AOL has finally given up on its Patch local news sites.
The idea that local news can attract readers who will attract advertisers is a Holy Grail of the news business, and has been the undoing of many a news executive. AOL CEO Tim Armstrong hatched Patch in 2007 while an executive at Google, then convinced AOL to buy it after he took over there.
Many observers, including AOL shareholders, felt Armstrong clung to Patch with a kind of blind paternal love. Fortunately for Armstrong, the rest of his AOL turnaround strategy has done well, and the stock is up 45 percent this year.
"Mr. Armstrong's big dream had become a nightmare that wore out his shareholders and set off a proxy fight in 2012. ... The insurgents lost the war, but turned out to be right."—David Carr, The New York Times
"At the end of the day, could Patch have been run better? We don't know. ... Patch was one of the big bets that we made, among others, and I still believe local will be a big opportunity whether it is Patch or someone else."—Armstrong