by InvestorPlace Staff | April 9, 2012 10:26 am
AOL (NYSE:AOL) has agreed to sell more than 800 patents to Microsoft (NASDAQ:MSFT) for roughly $1.1 billion.
The intellectual property covers key areas like search, social networking and advertising (AOL will be keeping more than 300 other patents).
The deal could be a harbinger of more patent fights in the Internet sector, as already seen with the recent litigation between Yahoo! (NASDAQ:YHOO) and Facebook.
And yes, investors definitely like AOL’s move. In early Monday trading, the shares are up a whopping 41% to $26.
AOL plans to distribute a “significant” portion of the proceeds back to shareholders. This is likely the best course of action, considering the company has had a miserable track record with acquisitions.
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