Microsoft has announced today that they will purchase AOL's portfolio of patents for $1 billion.
The 800 patents will be purchased in full while 300 others will be licensed into the future.
Says AOL CEO Tim Armstrong: "We continue to hold a valuable patent portfolio as highlighted by the license we entered into with Microsoft. The combined sale and licensing arrangement unlocks current dollar value for our shareholders and enables AOL to continue to aggressively execute on our strategy to create long-term shareholder value."
AOL says it will return most of the sale to shareholders, likely in the form of a special dividend.
The company confirmed last week that it had received numerous buyout offers from private equity firms, with the firms wanting to take AOL private. Starboard Value, a hedge fund that owns 5 percent of AOL, had valued the patents at $1 billion and it appears they were right.
Says AOL CEO Tim Armstrong: "We continue to hold a valuable patent portfolio as highlighted by the license we entered into with Microsoft. The combined sale and licensing arrangement unlocks current dollar value for our shareholders and enables AOL to continue to aggressively execute on our strategy to create long-term shareholder value."
AOL says it will return most of the sale to shareholders, likely in the form of a special dividend.
The company confirmed last week that it had received numerous buyout offers from private equity firms, with the firms wanting to take AOL private. Starboard Value, a hedge fund that owns 5 percent of AOL, had valued the patents at $1 billion and it appears they were right.
