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: Quote) 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: Quote). 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
International Business Machines Corp. said Monday after the markets closed that its first quarter profit fell 2.4% from last year, as improved margins could not offset a 12% decrease in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. Norway is all set to shut down FM radio in 2017, Radio.no reported. The Nordic country will be the first to scrap as it plans a shift to Digital Audio Broadcasting. The trailer of Star Wars: The Force Awakens, the latest installment from epic space film franchisee created by George Lucas, has sent both fans and Disney investors into a frenzy. Walt Disney Co.'s (DIS) market capitalization, which now owns the Star Wars franchisee, was boosted by about $2 billion...
comments powered by Disqus
RELATED NEWS
Trade AOL now with 
Follow RTT