AOL, Inc., today announced that it has completed the previously announced $1.056 billion patent transaction with Microsoft Corporation (NASDAQ: MSFT) (“Microsoft”). The transaction includes the sale of over 800 patents and their related patent applications, and grants Microsoft a non-exclusive license to its retained patent portfolio for aggregate proceeds of $1.056 billion in cash.
“The closing of this transaction represents another major step for AOL in increasing value for our shareholders,” said Tim Armstrong, Chairman and CEO. “As our track record has shown, you should expect us to continue our momentum of creating and unlocking shareholder value through continued operational improvements and executing on our strategy.”
As a part of the transaction AOL also received a license to the patents being sold to Microsoft. AOL continues to hold a significant patent portfolio of over 300 patents and patent applications spanning core and strategic technologies, including advertising, search, content generation/management, social networking, mapping, multimedia/streaming, and security among others.
Microsoft has earlier said it would sell the majority of its patent haul to Facebook, leaving Microsoft with 275 of the patents.
"Today’s agreement with Facebook enables us to recoup over half of our costs while achieving our goals from the AOL auction," said Brad Smith, executive vice president and general counsel at Microsoft. "As we said earlier this month, we had submitted the winning AOL bid in order to obtain a durable license to the full AOL portfolio and ownership of certain patents that complement our existing portfolio."