logo
Plus   Neg
Share
Email

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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
With sales by online retailers accounting for an increasing share of consumer spending, the U.S. Supreme Court has handed states a major victory in their efforts to boost revenue from sales tax. In a 5 to 4 ruling published Thursday, the Supreme Court sided with South Dakota in a case against online... AT&T Inc., which recently completed its acquisition of Time Warner Inc., has launched its new "WatchTV" streaming service with two unlimited data plans. In addition, WatchTV can be streamed through the WatchTV app. The two data plans - AT&T Unlimited &More and AT&T Unlimited &More Premium - are scheduled to launch next week. WatchTV features more than 30 live channels. Tesla Inc. has filed a lawsuit against a former employee, alleging that he stole the company's confidential data and transferred the information to third parties. The lawsuit accuses the former employee, Martin Tripp, of unlawfully hacking Tesla's confidential and trade secret information as well as transferring the information to third parties. The lawsuit was filed in a federal court in Nevada.
Follow RTT