Forums - Microsoft Discussion - AOL to sell 800 patents to Microsoft for $1 billion

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(Reuters) - AOL Inc (AOL.N) said it would sell over 800 of its patents and related applications to Microsoft Corp (MSFT.O), and would grant Microsoft a non-exclusive license to the patents it retains, for slightly over $1 billion in cash.

 

AOL's shares jumped 37 percent to $25.16 in trading before the bell on Monday. They closed at $18.42 on Friday on the New York Stock Exchange.

 

The Internet company said it plans to return a "significant portion of the sale proceeds" to shareholders.

AOL will continue to hold over 300 patents including advertising, search, and mapping, and said it received a license to the patents being sold to Microsoft.

"This is a valuable portfolio that we have been following for years and analyzing in detail for several months," Microsoft's General Counsel Brad Smith said.

Last month, media reports said that AOL had hired Evercore Partners after being pushed by activist shareholder Starboard Value LP who believed the company's patent portfolio could produce more than $1 billion in licensing income if properly monetized.

The transaction, which is expected to be completed by the end of 2012, includes the sale of an AOL unit on which AOL expects to record a capital loss for tax purposes.

Evercore Partners and Goldman Sachs acted as financial advisors to AOL. Wachtell, Lipton, Rosen & Katz and Finnegan, Henderson, Farabow, Garrett & Dunner acted as legal counsel.

If the deal falls through, Microsoft will pay AOL a termination fee of $211.2 million, AOL said in a regulatory filing.

 

http://www.reuters.com/article/2012/04/09/us-aol-microsoft-idUSBRE83809X20120409



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You never know in the stock market world which company will all of a sudden bounce up in stock!

How does AOL still make its money? Do they still give out those free AOL disks everywhere?

 Bananaking was right, I was wrong. Like he always is. About the 3DS not selling at least 19.999 million in 2013...

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spurgeonryan said:
You never know in the stock market world which company will all of a sudden bounce up in stock!

How does AOL still make its money? Do they still give out those free AOL disks everywhere?


I remember using AOL and the LOUSY Software years ago. What a pain in the ass.



Could be good for both companies!

spurgeonryan said:
You never know in the stock market world which company will all of a sudden bounce up in stock!

How does AOL still make its money? Do they still give out those free AOL disks everywhere?


presumably some it is from these patents... so how will they make money now?



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Wonder what some of the patents are for.

I don't understand how AOL is in business TBH. Their software is the WORST I have ever had the misfortune of using that one time.

Ok hopefully now we see MS use those patents usefully in 2013

___________

Pretend Exclusive: A 3rd party multiplat, that releases for multiple consoles in the same window, in which all press showings and marketing are catered to only one console. Exclusive console bundles, being the lead platform, as well as timed exclusive/exclusive  betas and game content also strengthen the claim. The final effect is that the uninformed gamer will be convinced that the version primarily advertised is the only and/or best place to experience the game.

X1: Titanfall, COD: AW.    PS4: Watch Dogs, Destiny

Xbox E3 Exclusives: Halo MCC, Crackdown 3, Phantom Dust, Scalebound, Dance Central Spotlight

Microsoft seems to have been quite busy lately! They are also being quite innovative... I will applaud their non-gaming side. So there you go Microsoft (Non-gaming side)! *claps*

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