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Illustration: Annelise Capossela/Axios

Patch, the hyperlocal (and profitable) local digital news company, has built a new software platform called "Patch Labs" that lets local news reporters publish their own newsletters and websites, sources tell Axios.

Why it matters: It follows a growing trend of journalists going solo via newsletters at the national level.

  • "I'm able to pay my bills," says Tran Longmoore, founder of The Saline Post in Michigan, who's been using the platform since July. "I'm selling a fair number of ads considering the state of the economy right now."

Details: The software is currently being used by several local journalists cover small communities independently, as well as a few local newsrooms, like the Michigan Sun Times, that have migrated their businesses onto the platform to reduce costs.

  • One independent journalist in Warren County, Ohio, covers five different local communities using the software.

How it works: The software allows reporters to sell ads and subscriptions directly via the platform, and keep most of the revenue.

  • When reporters sell sponsorships, memberships or custom community calendars, sources say Patch takes a 3% - 10% cut, which is in-line or a little higher than what companies like Substack and Patreon take.
  • Longmoore says he was able to import his subscription list onto the platform, and has seen it grow significantly since joining. The Patch digital infrastructure makes his website more reader and subscriber friendly.
  • Reporters can sign up to use the tech for free. Patch approves the journalists and newsrooms that sign-up, and journalists must agree to a journalistic code of ethics to remain on the platform.
  • Journalists have separate URLs and branding that are unaffiliated with Patch. Journalists in the future will have an opportunity to cross-post articles to Patch.com's local news network.

Between the lines: The new product isn't meant to be a cash cow for Patch in the short-term, but long-term, it could help the company onboard many more local news sites and reporters to its platform.

  • Patch currently has 180 employees and will end this year as its 5th consecutive year being profitable, sources say. Several full-time engineers are working on the project internally.
  • Patch has a few journalists internally using the platform in Manhattan Beach, California, and Tuscaloosa, Alabama. Those writers must adhere to stricter editorial standards.

The big picture: More news companies are investing in newsletter businesses at the local level to help communities with declining newspapers.

  • 6AM City, a local newsletter company, will close a funding round prior to the end of the year, executives tell Axios. It's on pace to exceed 500,000 subscribers by end of Q2 2021. CEO Ryan Johnston says the company intends to expand from seven southeastern cities to 15+ cities across the U.S. next year.
  • Axios plans to launch local newsletters in several markets next year, starting with Minneapolis; Denver; Tampa, Fla.; and Des Moines, Iowa.
  • Substack has several local journalists and outlets using its platform, including the Charlotte Ledger, and The Mill, which covers the greater Manchester, UK area.

Go deeper

Scoop: Gina Haspel threatened to resign over plan to install Kash Patel as CIA deputy

CIA Director Gina Haspel. Photo: Win McNamee/Getty Images

CIA Director Gina Haspel threatened to resign in early December after President Trump cooked up a hasty plan to install loyalist Kash Patel, a former aide to Rep. Devin Nunes (R-Calif.), as her deputy, according to three senior administration officials with direct knowledge of the matter.

Why it matters: The revelation stunned national security officials and almost blew up the leadership of the world's most powerful spy agency. Only a series of coincidences — and last minute interventions from Vice President Mike Pence and White House counsel Pat Cipollone — stopped it.

Updated 7 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus deaths reach 4,000 per day as hospitals remain in crisis mode — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden says, "We will manage the hell out of" vaccine distribution — Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan — Widow of GOP congressman-elect who died of COVID-19 will run to fill his seat.
  3. Vaccine: Battling Black mistrust of the vaccines"Pharmacy deserts" could become vaccine deserts — Instacart to give $25 to shoppers who get vaccine.
  4. Economy: Unemployment filings explode againFed chair: No interest rate hike coming any time soon —  Inflation rose more than expected in December.
  5. World: WHO team arrives in China to investigate pandemic origins.

John Weaver, Lincoln Project co-founder, acknowledges “inappropriate” messages

John Weaver aboard John McCain's campaign plane in February 2000. Photo: Robert Schmidt/AFP via Getty Images)

John Weaver, a veteran Republican operative who co-founded the Lincoln Project, declared in a statement to Axios on Friday that he sent “inappropriate,” sexually charged messages to multiple men.

  • “To the men I made uncomfortable through my messages that I viewed as consensual mutual conversations at the time: I am truly sorry. They were inappropriate and it was because of my failings that this discomfort was brought on you,” Weaver said.
  • “The truth is that I'm gay,” he added. “And that I have a wife and two kids who I love. My inability to reconcile those two truths has led to this agonizing place.”