AOL sells Microsoft lots of patents
Microsoft and AOL have announced a deal that will see Microsoft purchase over 800 patents that AOL currently holds. In addition of buying outright 800 patents, Microsoft is also licensing 300 more patents. AOL gets to keep a license allowing it to use all the patents covered in the deal. The patents cover a number of things such as advertising, search, and content generation among others.
The deal is worth $1.056 billion and is expected to close by the end of year. “The agreement with Microsoft represents the culmination of a robust auction process for our patent portfolio,” said Tim Armstrong, AOL’s Chairman and CEO. “We continue to hold a valuable patent portfolio as highlighted by the license we entered into with Microsoft. The combined sale and licensing arrangement unlocks current dollar value for our shareholders and enables AOL to continue to aggressively execute on our strategy to create long-term shareholder value.”