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NEW YORK: AOL Inc, under shareholder pressure to make strategic changes as revenue declines, agreed to sell and license patents to Microsoft Corp in a deal worth $1.06 billion.
The Internet company will sell more than 800 patents and related patent applications to Microsoft and grant the software maker a non-exclusive license to its retained patent portfolio, the companies said today in a statement. AOL will hold more than 300 patents and patent applications after the deal.
The transaction lets New York-based AOL generate additional funds amid slow advertising growth and a decline in its dial-up Internet subscribers. The company, whose revenue has dropped 29 per cent since its 2009 spinoff from Time Warner Inc, has faced pressure from shareholder Starboard Value LP to consider moves including a patent deal.
AOL said it plans to return a "significant portion" of the sale proceeds to shareholders. Had the patent deal closed already last year, AOL said it would have had about $15 per share of cash on hand as of Dec. 31, 2011.
TOI
The Internet company will sell more than 800 patents and related patent applications to Microsoft and grant the software maker a non-exclusive license to its retained patent portfolio, the companies said today in a statement. AOL will hold more than 300 patents and patent applications after the deal.
The transaction lets New York-based AOL generate additional funds amid slow advertising growth and a decline in its dial-up Internet subscribers. The company, whose revenue has dropped 29 per cent since its 2009 spinoff from Time Warner Inc, has faced pressure from shareholder Starboard Value LP to consider moves including a patent deal.
AOL said it plans to return a "significant portion" of the sale proceeds to shareholders. Had the patent deal closed already last year, AOL said it would have had about $15 per share of cash on hand as of Dec. 31, 2011.
TOI
