Microsoft to buy 800 patents from AOL for a cool billion dollars

09 April, 2012 | Comments (22) | Post your comment

Tags: Microsoft, Misc

The patent war is fierce and many companies have decided to extend their patent portfolios by buying patents from others. Microsoft will be doing just that in a deal with AOL.

They'll be buying 800 patents from AOL, who will be left holding 300 more. As part of the deal, Microsoft will also get a non-exclusive license for those remaining patents. The bill will be just over $1 billion for the whole thing.

Microsoft didnít just jump into this deal - they've been following AOL's portfolio for years and spent several months to study it in detail.

The purchase had a really positive effect on the AOL stock, which jumped 37% - from the $18.42 it closed on Friday to $25.16.

The deal should be finalized by the end of this year and a big chunk of the cash is expected to go to shareholders. Should the deal fail, Microsoft will have to cough up $211.2 million to AOL.

An AOL unit will also be sold as part of the deal and recorded as a capital loss (it's a tax thing).

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Microsoft to buy 800 patents from AOL for a cool billion dollars - reader comments

  • pooooooooooooo

nice logo

  • Reply
  • 2012-04-11 02:14
  • s8FZ
  • Anonymous

What a clever show M$ & AOL. You think you can fool us. All you Feddie companies will go down the drain.

  • Reply
  • 2012-04-10 14:43
  • jPVH
  • darkmax

They must have forgotten about their coupons, 'else it would have been 1000 patents for the same price

  • Reply
  • 2012-04-10 14:26
  • IWQm