AOL announced on Monday that it will sell more than half of its patent portfolio to Microsoft. The sale of 800 patents and their related applications, plus a license for Microsoft to use AOL’s remaining patents will generate $1.06 billion for AOL.
The Microsoft deal came about after a “robust” auction of AOL’s patents, according to Tim Armstrong, AOL’s chairman and CEO. After the announcement, AOL’s shares jumped 35 percent. The company says that it will return a “significant portion” of the sale proceeds to its shareholders before the end of the year.