Andre Yoskowitz
1 Apr 2012 0:19
Last week, AOL hired Evercore Partners to help it sell its 800-strong patent portfolio.
The company confirmed it has received numerous buyout offers from private equity firms, with the firms wanting to take AOL private. Such firms include Providence Equity Partners Inc, TPG Capital and Silver Lake. At the time, Starboard Value, a hedge fund that owns 5 percent of AOL, said the firms believe AOL's patent portfolio could bring in over $1 billion in licensing income if used correctly.
Today, the patent advisory firm M-Cam has said the patents are worth about $290 million, a significantly smaller figure than the hedge fund hoped for.
AOL was once valued at over $100 billion but now has a market cap of just $1.75 billion thanks to slowing advertising growth and the decade-long decline of dial-up revenue.
Stupid purchases, like $800 million for Bebo, certainly has not helped the company's fortunes either.