AOL Sells 800 Patents to Microsoft for $1.06 Billion

AOLNEW YORK -- AOL said Monday that it has agreed to sell 800 of its patents and their related applications to Microsoft and grant it a license for its remaining patents for a total about $1.06 billion in cash.

New York-based AOL (AOL) said it plans to return some of the sale proceeds to its shareholders.

The company's shares jumped $6.46, or 35 percent, to $24.77 in premarket trading. Microsoft shares slipped 22 cents to $31.30.

After the sale, AOL said it will still hold over 300 patents and applications covering a variety of core and strategic technologies including advertising, search, content generation, social networking, mapping, multimedia, and security among others.

AOL also received a license to the patents being sold to Redmond, Wash.-based Microsoft (MSFT).

Tim Armstrong, AOL's chairman and chief executive, said the deal with Microsoft resulted from a "robust" auction of the company's patents. He said the company's license agreement with Microsoft shows that it still holds a valuable patent portfolio.

"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," Amstrong said in a statement.

AOL said it will determine the best way to distribute a "significant portion" of the sale proceeds to shareholders before the sale closes, which is expected to happen by the end of this year.

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62 Comments

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Vickie

I think this is GREAT news! Bring AOL to this generation! I love AOL = Hate HUFF - AOL has some dynamite features - USE THEM!

April 10 2012 at 2:00 AM Report abuse rate up rate down Reply
Larry

Great. Now maybe AOL can afford respectable news coverage.

April 10 2012 at 12:29 AM Report abuse +1 rate up rate down Reply
1 reply to Larry's comment
Setanta

now now,huffingho IS the epitome of reporting and documentation !

April 10 2012 at 1:44 AM Report abuse rate up rate down Reply
1 reply to Setanta's comment
syntheticlubeguy

What? No more Nat'l Enquirer?

April 10 2012 at 7:08 AM Report abuse rate up rate down
wheniwasphab

AOL has gone from the biggest POS (I joined in 1994) to the smallest POS in only 17 years. HuffPost is a joke, the remaining room chatters are a bunch of old Yids or rednecks. It's time it just die an embarrassing death.

April 09 2012 at 11:20 PM Report abuse +2 rate up rate down Reply
1 reply to wheniwasphab's comment
Setanta

LM@O ! and how many bailed out DUE to huffiepoop and look what they did to their sacred message boards !

April 10 2012 at 1:36 AM Report abuse rate up rate down Reply
1 reply to Setanta's comment
Setanta

http://help.aol.com/help/microsites/search.do?cmd=displayKC&docType=kc&externalId=76956

April 10 2012 at 1:43 AM Report abuse rate up rate down
johnjhenry1

AOL=Alabama on Line

April 09 2012 at 10:01 PM Report abuse -1 rate up rate down Reply
Scotty

I have been an AOL member for 12 years and the best thing that they could do would be to get rid of the Huffington Post. Even though it' slant's too far to the left, the page loads are terrible as they just put too much content on each.

April 09 2012 at 9:53 PM Report abuse +2 rate up rate down Reply
robthebl0gger7

I didn't know AOL had a billion worth of anything. No one knows what aol is anymore except for those using the internet in the 90's

April 09 2012 at 9:07 PM Report abuse +2 rate up rate down Reply
airsyspro

AOL could use the money after over paying for Huffingtom Post!

April 09 2012 at 8:58 PM Report abuse +2 rate up rate down Reply
bijoutouri

AOL, get rid of the Huffington Post too. I agree with comments below that it takes too long to download. Worst of all, it's so very left leaning. Articles are badly written many times and not reported with complete facts.

April 09 2012 at 8:53 PM Report abuse +4 rate up rate down Reply
lsulinebacker64

I wish I had the secret to how to getting the attention of companies or individuals that would be interested in my Product... Even companies out of CHINA, JAPAN, and other countries that would like to take that step....

April 09 2012 at 8:49 PM Report abuse rate up rate down Reply
2 replies to lsulinebacker64's comment
BusinessLaw101

Hi. Do you know about intellectual properties?
If you do then contact me.

April 10 2012 at 4:50 AM Report abuse rate up rate down Reply
BusinessLaw101

Isulineback64, do you know aobut intellectual properties? If you do, then contact me.

April 10 2012 at 4:52 AM Report abuse rate up rate down Reply
lsulinebacker64

I hope MY Invention is strong enough to sale my Patent for a pinch of that amount...

April 09 2012 at 8:39 PM Report abuse -1 rate up rate down Reply