AOL has announced that it will be selling 800 of its 1,100 patents to Microsoft for $1 billion in cash, as one of the first players in the Internet space this will hopefully give the company a boost to their stock price, but more importantly mark a turning point for the company.
“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.”
You can almost hear a big sigh of “temporary” relief from AOL’s CEO Tim Armstrong.
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