Facebook today signed a definitive for $550 million in cash with Microsoft that will allow Facebook the right to purchase a portion of the patent portfolio it recently agreed to acquire from AOL Inc.
"A week ago, Microsoft bought around 925 U.S. patents and patent applications from AOL for a billion dollars plus a license to AOL's remaining patent portfolio, which contains approximately 300 additional patents that were not for sale."
As a result of today's agreement, Facebook will obtain ownership of approximately 650 AOL patents and patent applications, plus a license to the AOL patents and applications that Microsoft will purchase and own.
"Upon closing of this transaction with Facebook, Microsoft will retain ownership of approximately 275 AOL patents and applications; a license to the approximately 650 AOL patents and applications that will now be owned by Facebook; and a license to approximately 300 patents that AOL did not sell in its auction," Microsoft posted.
"Today's agreement with Facebook enables us to recoup over half of our costs while achieving our goals from the AOL auction," said Brad Smith, evp and general counsel, Microsoft.
"Today's agreement with Microsoft represents an important acquisition for Facebook," said Ted Ullyot, general counsel, Facebook. "This is another significant step in our ongoing process of building an intellectual property portfolio to protect Facebook's interests over the long term."