AOL has announced it it selling 800 patents to Microsoft for $1.06 billion, patents include advertising, search, content generation, social networking, mapping, multimedia, and security, plus other "core" technologies. AOL will still have about 300 patents after the sale.
AOL has been limping along as the broadband era surpassed dial-up, something AOL was famously dominate in. Revenue at AOL is just a fraction of what it used to be 10 years ago and the company has been looking for ways to stop the hemorrhaging of money and turn its fortunes around.
AOL's Chairman and CEO said, “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."
As part of the deal, AOL will also have licensing rights to use the patents it is selling to Microsoft. AOL said it plans to return a significant portion of the money to its shareholders.
AOL shares are up 35% to $24.77 while shares of Microsoft fell 22% to $31.30.