AOL shares skyrocket thanks to patent deal with Microsoft

Microsoft's move to purchase 800 patents from AOL today for just over $1 billion has received Wall Street's stamp of approval, as least as far as AOL is concerned. The stock price for AOL has surged up over 43 percent as of this news post. The overall stock market is down for the day and Microsoft's stock price is down close to one percent as of this writing.

AOL has been struggling financially for a number of years and has been in the process of shutting down or selling off many of its operations, along with several mass layoffs. However, the amount of money it will receive via its deal with Microsoft could allow AOL to make some acquisitions that could finally turn things around for the company.

AOL has already announced it will use "a significant portion of the sale proceeds" to pay off its shareholders in some way. Such a gesture might help to keep its investors from jumping ship.

Meanwhile, Microsoft gains access to a number of patents, including reportedly those that AOL owned when it bought Netscape many years ago.

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14 Comments

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Sorta stupid that share prices grew when they were actually throwing away something of genuine value that they have.

Mark said,
Sorta stupid that share prices grew when they were actually throwing away something of genuine value that they have.

Netscape is "genuine value"??

Raa said,

Netscape is "genuine value"??

No but some the _patents_ associated with it had some value, or at least Microsoft thinks they do even to the tune of paying more then AOL originally thought they could get.

Dot Matrix said,
So all they did was close the water-tight doors. She's still going to sink, albeit a bit more slowly.

I think they hope to get a captain leading the ship while it sinks...

Steve Jobs once said "Apple is like a ship with a hole in the bottom, leaking water. And my job is to get the ship pointed in the right direction".

Aethec said,

I think they hope to get a captain leading the ship while it sinks...

Steve Jobs once said "Apple is like a ship with a hole in the bottom, leaking water. And my job is to get the ship pointed in the right direction".

And what a brilliant statement that was..

Aethec said,

I think they hope to get a captain leading the ship while it sinks...

Steve Jobs once said "Apple is like a ship with a hole in the bottom, leaking water. And my job is to get the ship pointed in the right direction".

Actually, I think that was Gil Amelio who said that, Apple's CEO before Jobs

THolman said,

Actually, I think that was Gil Amelio who said that, Apple's CEO before Jobs

Shh. That's blasphemy. NOTHING exists until Apple or Steve Jobs does it.

Aethec said,

I think they hope to get a captain leading the ship while it sinks...

Steve Jobs once said "Apple is like a ship with a hole in the bottom, leaking water. And my job is to get the ship pointed in the right direction".


Yeah, about that analogy...

Aethec said,

I think they hope to get a captain leading the ship while it sinks...

Steve Jobs once said "Apple is like a ship with a hole in the bottom, leaking water. And my job is to get the ship pointed in the right direction".

He never said that. He said that was by Gil Amelio.. get your facts right

Dot Matrix said,

Shh. That's blasphemy. NOTHING exists until Apple or Steve Jobs does it.

So death and cancer was also invented by Steve Jobs ?