AOL sells $1.056 Billion worth of patents to Microsoft

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imageAOL, Inc., today announced that it has completed the previously announced $1.056 billion patent transaction with Microsoft Corporation (NASDAQ: MSFT) (“Microsoft”). The transaction includes the sale of over 800 patents and their related patent applications, and grants Microsoft a non-exclusive license to its retained patent portfolio for aggregate proceeds of $1.056 billion in cash.

“The closing of this transaction represents another major step for AOL in increasing value for our shareholders,” said Tim Armstrong, Chairman and CEO. “As our track record has shown, you should expect us to continue our momentum of creating and unlocking shareholder value through continued operational improvements and executing on our strategy.”

As a part of the transaction AOL also received a license to the patents being sold to Microsoft. AOL continues to hold a significant patent portfolio of over 300 patents and patent applications spanning core and strategic technologies, including advertising, search, content generation/management, social networking, mapping, multimedia/streaming, and security among others.

Microsoft has earlier said it would sell the majority of its patent haul to Facebook, leaving Microsoft with 275 of the patents.

"Today’s agreement with Facebook enables us to recoup over half of our costs while achieving our goals from the AOL auction," said Brad Smith, executive vice president and general counsel at Microsoft. "As we said earlier this month, we had submitted the winning AOL bid in order to obtain a durable license to the full AOL portfolio and ownership of certain patents that complement our existing portfolio."

Via Businesswire.com



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  • rsgx

    Damn, I wonder if Engadget will mention it.

    • http://www.office365.com/ Henrik

      They did, when the news was fresh back when it was made public :-)
      http://www.engadget.com/2012/04/23/facebook-buys-aol-patents/ 

      • rsgx

        Ah, naturally disguised under a different title.

        • http://www.office365.com/ Henrik

          Yeah, they don’t really seem to fancy Microsoft over there :-) Very unprofessional site if you ask me … Kids with too much “influence” and “power”. Fuck ‘em.

          • http://twitter.com/s_a_r_k_i_s sarkis chamelian

            Amen to that.

          • Anonymous

            So, do you know of a good tech blog which is good and isn’t bias towards Apple and Google?

          • rsgx

            I don’t think they exist. Consider both Engadget and The Verge are run by Apple fans.