You would be tempted to say that the transaction of the day was related to the Instagram acquisition by Facebook. Well, Microsoft made a similar order to strengthen this patents portfolio with a large transaction with AOL.
At stake are more than 800 patents and related applications. AOL keeps another 300 patents useful for the business and its use gives Microsoft a non-exclusive license to them.
The price seems huge to me – $1.1 billion. An amount of $100 million less and Mark Zuckerberg has turned to bring Instagram with Facebook. Microsoft courtship AOL for some time and studied for months that patents. They thus eventually to reach an agreement suitable to both parties.
Microsoft is on the offensive as Google, Facebook and Apple. They get Skype, the partnership with Nokia cost a lot and I’m just looking at the expensive marketing resulting from Lumia Series launch and its U.S. market debut.
If the transaction between AOL and Microsoft is not completed Microsoft will have to pay over $211 million to AOL.
Other transactions related to patents:
- Nortel Networks for $4.5 billion and the means were more than 6,000 patents;
- Google bought Motorola for $12.5 billion and in the middle are more than 18,000 patents;
- Microsoft acquires 800 patents from AOL for $1 billion.