Originally published: April 9, 2012
Last updated: April 9, 2012 - 8:53pm
America Online (AOL) 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 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. 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.
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