AOL sells patents to Microsoft for USD 1.1 bln

News Broadband Global 9 APR 2012
AOL sells patents to Microsoft for USD 1.1 bln
AOL announced a deal to sell over 800 of its patents to Microsoft for USD 1.056 billion cash. The agreement follows a competitive auction of the intellectual property and includes a non-exclusive licence to Microsoft for AOL's remaining portfolio of over 300 patents. In addition, AOL will continue to have access to the sold patents through a licensing deal with Microsoft. AOL said it plans to give a significant portion of the proceeds to shareholders, which pro forma for cash at the end of 2011, should equal around USD 15 per share. This is line with demands from certain shareholders such as Starboard Value, who have called on AOL to monetise its intellectual property better. The company will decide on how to distribute the cash before the sale to Microsoft closes. AOL expects to complete the deal by the end of 2012.

Categories:

Internet

Companies:

AOL,  Microsoft

Regions:

Global

Tags:

Data services, IT - applications, Wholesale, Advertising services, M&A buyouts & divestments, Research and development

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