AOL Nabs $1.1 Billion for Its Patents

by InvestorPlace Staff | April 9, 2012 10:26 am

tim armstrong ceo aol s AOL Nabs $1.1 Billion for Its Patents [1]AOL (NYSE:AOL[2]) has agreed[3] to sell more than 800 patents to Microsoft (NASDAQ:MSFT[4]) 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[5], as already seen with the recent litigation between Yahoo! (NASDAQ:YHOO[6]) 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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