Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home CRM Systems Customer Service Business Intelligence Sales & Marketing More Topics...
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Business Briefing
24/7/365 Network Uptime
Average Rating:
Rate this article:  
AOL Sells Microsoft 800 Patents in Billion-Dollar Deal
AOL Sells Microsoft 800 Patents in Billion-Dollar Deal

By Jennifer LeClaire
April 9, 2012 12:04PM

Bookmark and Share
"We continue to hold a valuable patent portfolio as highlighted by the license we entered into with Microsoft," said Tim Armstrong, AOL's chairman. AOL's patent sale and licensing with Microsoft "unlocks current dollar value for our shareholders and enables AOL to continue to aggressively execute on our strategy to create long-term shareholder value."
 


While Google and Facebook are relying on IBM patents, Microsoft is moving to cover some of its IP bases with AOL's patent portfolio. AOL just agreed to sell Redmond more than 800 patents and related patent applications and to grant the software giant a non-exclusive license to its retained patent portfolio.

The price tag: $1.056 billion in cash.

"This is a valuable portfolio that we have been following for years and analyzing in detail for several months," said Brad Smith, general counsel and executive vice president of Legal and Corporate Affairs at Microsoft. "AOL ran a competitive auction and by participating, Microsoft was able to achieve our two primary goals: obtaining a durable license to the full AOL portfolio and ownership of certain patents that complement our existing portfolio."

Creating Shareholder Value

After AOL inks the deal, the Internet company will continue to hold a sizable patent portfolio -- more than 300 patents and patent applications crossing technologies including advertising, search, content generation and management, social networking, mapping, multimedia and streaming, and security. As part of the deal, AOL also received a license to the patents being sold to Microsoft.

"The agreement with Microsoft represents the culmination of a robust auction process for our patent portfolio," said Tim Armstrong, AOL's chairman and CEO. "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."

Netscape IP Involved?

We asked Charles King, principal analyst at Pund-IT, to chime in on Microsoft's billion-dollar buy. As he sees it, there's typically not much meat to pick off the carcass of a company that has been circling the drain as long as AOL has. But Microsoft sees some tasty bits left over, especially related to online transactions and communications.

"All Things Digital is claiming that a lot of the Netscape IP that AOL purchased when the browser-maker gave up the ghost in 1998 is included in this deal as well," King said. "Although according to AllThingsD, AOL is going to retain the brand name and the ISP and URLs for Netscape."

If the AllThingsD blog report is accurate, King said, there is irony in the fact that a company that was almost entirely responsible for Netscape going under -- that company being Microsoft -- is now purchasing what's left of the intellectual property. Nearly a decade ago, Microsoft paid AOL $750 million as part of its historic antitrust judgment.

"When AOL bought Netscape back in 1998 they paid about $4.2 billion. That was when a billion was real money," King said.

"I am sure that they've realized some financial benefits from the IP and those holdings over the years. But from a real dollar perspective, they paid $4.2 billion and they've gotten just under $2 billion from Microsoft for that investment."
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Business Briefing
1.   AT&T in $500M Net Video Partnership
2.   High Court To Hear Aereo Dispute
3.   Aereo CEO Speaks Out on Future
4.   Uber Meets Local Lookalikes in Asia
5.   Otherworldly Ambitions of Elon Musk


advertisement
Zebra Buys Motorola Enterprise Biz
Pays $3.45B in all-cash deal.
Average Rating:
Is Zuckerberg Nuts To Buy Oculus VR?
$2 billion deal for unproven company.
Average Rating:
High Court To Hear Aereo Dispute
Future of television debated in court.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Business Intelligence | Sales & Marketing | Contact Centers | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.