All the latest UK technology news, reviews and analysis


Microsoft seals $1bn patent deal with AOL

16 Jun 2012
aol-logo

Microsoft and AOL have finalised their $1.05bn patent deal.

The companies confirmed late Friday that the transaction had been completed, giving Microsoft control of AOL's patent portfolio and bringing the company a much-needed cash infusion.

"The closing of this transaction represents another major step for AOL in increasing value for our shareholders," said chief executive and chairman Tim Armstrong.

"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."

The two companies first announced the deal in April, hailing the agreement as a mutually beneficial transaction.

AOL has long sought out a lucrative patent sale as part of a long-term strategy to rebuild the internet service provider into an online content portal. The company said that all proceeds from the transaction will be distributed to its shareholders.

Microsoft, meanwhile, has sought out patents both as a means of making money from licensing agreements and as a valuable tool for settling patent infringement litigation. Microsoft is currently involved in high-profile cases with companies such as the Google-owned Motorola.

Earlier this year, Microsoft confirmed that it had signed a $550m deal with Facebook, granting the social network the right to purchase a large chunk of the AOL patents it was set to acquire.

  • Comment  
  • Tweet  
  • Google plus  
  • Facebook  
  • LinkedIn  
  • Stumble Upon  
Shaun Nichols
About

Shaun Nichols is the US correspondent for V3.co.uk. He has been with the company since 2006, originally joining as a news intern at the site's San Francisco offices.

More on Strategy
What do you think?
blog comments powered by Disqus
Poll

BYOD vs CYOD vs BYOC poll

Which approach is your firm taking to managing employees' mobile devices?
21%
13%
4%
21%
31%
10%

Popular Threads

Powered by Disqus
Sony Xperia Z2 Tablet powered by Android KitKat 4.4

Sony Xperia Z2 Tablet video

We take a look at the lightweight, waterproof tablet

Updating your subscription status Loading
Newsletters

Get the latest news (daily or weekly) direct to your inbox with V3 newsletters.

newsletter sign-up button
hpv33

Data protection: the key challenges

Deduplication is a foundational technology for efficient backup and recovery

rdc2

iPad makes its mark in the enterprise

The iPad can become a supercharged unified communications endpoint, allowing users to enhance their productivity

Software Development Engineer

Develop: Customise: Configure. Maximise your technical...

Internship – Modeling computational complexity of DSP algorithms

Internship – Modeling computational complexity of DSP...

Software Developer

Do you consider yourself a good programmer and get a...

iOS / OS X Software Engineer

Location: Wroclaw Join the leader in entertainment...
To send to more than one email address, simply separate each address with a comma.