Printed from http://www.electronista.com

AOL sells, licenses near $1.1b in patents to Microsoft

updated 09:20 am EDT, Mon April 9, 2012

AOL raises cash through patent deals

AOL made an important deal to raise cash Monday by selling patents to Microsoft. Under the deal, AOL would sell 800 patents to the Windows developer and license out 300 more. The terms would give it an immediate payment of $1.06 billion in cash, and Microsoft would give AOL a perpetual license back.

To help absorb the income tax hit from the deal, AOL would use $40 million of deferred tax assets. The deal was expected to close before the end of the year.

Adding the cash may be vital for AOL, which as of the end of 2011 had $407.5 million in pure cash. Its market cap at $1.75 billion represents more of its current value.

Microsoft hasn't said what it plans to do with the patents, although only some of the patents relate to AOL's content portals and websites. Others are relevant for wireless technology, interfaces, and voice. The acquisition could be an advantage in trying to challenge companies like Motorola over Android by wielding patents firms like Motorola weren't prepared to counter.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

D-Link Wi-Fi Smart Plug

Home automation fans have been getting their fair share of gadgets and accessories in the last few years. Starting with light bulbs, a ...

Razer Kraken Pro headset

Gaming headphones are a challenge to get right, for a long list of reasons that are unique to the consumer buying them. Some shoppers ...

Patriot Aero Wireless Mobile Drive

Regardless of how large a tablet you buy, you always want more space. There's always one more movie or another album you'd cram on, if ...

Sponsor

toggle

Most Commented

 
toggle

Popular News