Business Insider appears pretty confident in the story it wrote today about hyperlocal octopus

EXCLUSIVE: Now We Know AOL’s Patch Revenue – And It’s Tiny

The always-churning news site touts some “documents we’ve obtained from a source.” Those documents, it says, indicate that’s “outside sales force generated just $7.8 million . . . in revenue through the middle of December.” At the same time, it reports that AOL CEO Tim Armstrong sunk $140 million into in 2011. Thus setting up this graph:

Even if you overestimate Patch’s other revenues streams — let’s say their total is twice the size of Patch’s outside sales revenues — you can still safely say that Tim Armstrong’s local news project lost about $100 million this year.

Patch declined to comment to Business Insider about the revelations.

Patch did issue a reaction to the Erik Wemple Blog. According to spokeswoman Janine Iamunno:

“No, there’s nothing to it. The analysis is completely off-base. We are extremely happy with our progress in 2011 and confident in our plans for 2012. While we don’t release internal numbers, we can confirm that, once again, the speculation machine has malfunctioned.”

Iamunno wouldn’t comment on why Patch declined to comment for Business Insider.