logo
Share SHARE
FONT-SIZE Plus   Neg

AOL To Sell, License Patents To Microsoft In $1.06 Bln Cash Deal - Quick Facts

Web service company AOL, Inc. (AOL) on Monday said it has entered into a definitive agreement to sell over 800 of its patents and their related patent applications to Microsoft Corp. (MSFT). The company would also grant Microsoft license to more than 300 additional patents and patent applications. The aggregate proceeds of the deal would be $1.056 billion in cash.

The company expects the deal to be completed by the end of 2012, upon the satisfaction of customary conditions and regulatory approvals.

Following the sale, AOL will continue to hold a significant patent portfolio of over 300 patents and patent applications spanning core and strategic technologies. These include advertising, search, content generation/management, social networking, mapping, multimedia/streaming, and security among others.

AOL also received a license to the patents being sold to Microsoft.

AOL added that its management and its Board of Directors intend to return a significant portion of the sale proceeds to shareholders and will determine the most efficient and effective method to do so prior to the closing of the deal.

Pro forma for the sale and license, as of December 31, 2011, AOL would have had approximately $15 per share of cash on hand, it said.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Internet access is growing worldwide, but there is still a long way to go before the entire world is completely wired, a study from the Pew Research Center has found. The study also noted that men have greater access to the Internet than women in many nations. Backtracking on its early announcements on digital privacy, WhatsApp is planning to share member information, phone numbers and analytical data with Facebook, to make revenue from the platform. Discount retailers Dollar Tree Inc. and Dollar General Corp. both reported results for the second quarter that missed analysts' expectations. Looking ahead, Dollar Tree also forecast revenue for the third quarter below analysts' estimates and lowered its full-year revenue outlook. Shares of both companies are falling in pre-market activity.
comments powered by Disqus
Follow RTT