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Microsoft to buy AOL patents for $1 billion

Written by Andre Yoskowitz (Google+) @ 09 Apr 2012 1:46 User comments (2)

Microsoft to buy AOL patents for $1 billion 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.

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2 user comments

113.4.2012 10:03

The rise and fall of huge corporations. Remember how big AOL was in the late 90's/ early 00's? I just responded about SONY downsizing. Blockbuster. Borders books. It's the cycle of life I guess. I am assuming Microsoft will have it's day too. What a catastrophe when that empire falls.

213.4.2012 14:39

AOL should have never got off the ground but that's another subject.

Microsoft buying something? They're starting a bad trend they need to go back to stealing, that is what they do best.

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