Mark Josephson, head of marketing and revenue for AOL's local news network Patch, has resigned from the company after being there for about two years, AOL confirmed to BuzzFeed today.
AOL CEO Tim Armstrong, despite pouring resources into the local network of news sites, has had trouble finding traction for it that matches the success of its other media outlets like The Huffington Post. As AOL's revenue from its dial-up business declined, the company has sought alternative methods to generate money — including from the network of local sites.
"We thank Mark for his dedication and contributions to Patch and wish him well as he embarks on a new chapter in his career," AOL said in a statement.
So far, the moves have been successful at least in the eyes of investors as the company's shares have risen more than 20% in the past year. But shares plunged after AOL's last earnings report, in which the company lost $5 million in its Brand Group, which includes its media properties, despite an increase in net income and revenue.
Still, Armstrong has put well more than $100 million into Patch, even though the company's media operations lost money last year. On the last earnings call, Armstrong said he believes Patch could be profitable in the fourth quarter this year.
Josephon's previous company, Outside.in, was acquired by Patch in 2011, and Josephson took over Patch's plans to generate revenue off its network of small, local blogs.
AOL reports its second-quarter earnings on August 7.
Matthew Lynley is a business reporter for BuzzFeed News in San Francisco. Lynley reports on Silicon Valley and the tech industry.
Contact Matthew Lynley at firstname.lastname@example.org.
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