(LOS ANGELES) — Facebook is purchasing $550 million in patents from Microsoft, the companies announced Monday in a joint press release. The patents to be transferred were part of a larger acquisition Microsoft made earlier this month with AOL.
“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,” the companies said.
“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 executive vice president and general counsel Brad Smith said, “Today’s agreement with Facebook enables us to recoup over half of our costs while achieving our goals from the AOL auction.”
The acquisition is the latest in a series of financial moves for Facebook. Earlier this month, the social networking giant shelled out $1 billion to scoop up the photo-sharing application Instagram and its tiny staff.
Copyright 2012 ABC News Radio
Jethro Mullen Ivana Kottasova and Patrick Gillespie, CNN
Scott Zamost and Drew Griffin, CNN Newswire