AOL has transferred three quarters of their patents to Microsoft for $1.056 billion. Microsoft now owns over 800 of AOL’s 1,100 patents. Microsoft has a non-exclusive license to the remainder of the patents. AOL will retain a license to the patents that they sold and Microsoft will be using their new intellectual property in a deal with Facebook. AOL had patents on social networking, advertising, search, mapping, media streaming, and security.
“The closing of this transaction represents another major step for AOL in increasing value for our shareholders,” said AOL in a statement. “You should expect us to continue our momentum of creating and unlocking shareholder value… to return more value to shareholders and… create long-term shareholder value.” AOL will use the money from the sale to attract investors for their content network.