logo
Share SHARE
FONT-SIZE Plus   Neg

Microsoft, Facebook Announce $550 Mln Patent Deal

Software giant Microsoft Corp. (MSFT) and social networking giant Facebook on Monday announced a definitive agreement under which Microsoft will assign to Facebook the right to purchase for $550 million in cash a portion of the patent portfolio it recently agreed to acquire from AOL Inc. (AOL).

In the initial AOL auction, Microsoft secured the ability to own or assign approximately 925 U.S. patents and patent applications plus a license to AOL's remaining patent portfolio, which contains about 300 additional patents that were not for sale.

As a result of Monday's deal, Facebook will obtain ownership of about 650 AOL patents and patent applications, plus a license to the AOL patents and applications that Microsoft will purchase and own.

Following the closing of the deal with Facebook, Microsoft will retain ownership of about 275 AOL patents and applications; a license to the about 650 AOL patents and applications that will now be owned by Facebook; and a license to about 300 patents that AOL did not sell in its auction.

The parties are evaluating the accounting treatment for these transactions.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Swiss drug giant Novartis AG reported Tuesday higher profit in its third quarter with improved sales in all divisions. Both core earnings and top line beat market estimates. For fiscal 2017, the company continues to expects net sales to be broadly in line with prior year and core operating income to be broadly in line or decline low single digit, both at constant currency rates. World's largest oil company Saudi Aramco's initial public offering is on track and the listing will be in the second half of 2018, CEO Amin Nasser said in an exclusive interview with CNBC. There have been reports that the much awaited IPO might be delayed by one year. Taco Bell, the Mexican fast food chain of Yum! Brands Inc., is reportedly testing a new dessert product called the "Kit Kat Chocoladilla" at select locations in Wisconsin. It was tested last year in the UK.
comments powered by Disqus
Follow RTT