Microsoft and Facebook must have spent plenty of time around the negotiating table before arriving at a decision that enables them to make this particular announcement today – that is, Microsoft will assign to Facebook the right to purchase a portion of the patent portfolio that it recently picked up from AOL Inc., where Facebook will have to dip into its deep pockets and pony up $550 million in cold, hard cash. Of course, this should not be an issue for Facebook at all, considering how they forked out $1 billion for Instagram recently. Just how much of a stake will Facebook hold? Well, as it was reported that Microsoft paid AOL $1.056 billion for approximately 925 U.S. patents and patent applications in addition to a license to AOL’s remaining patent portfolio that stashes away another 300 or so patents, this would clearly mean Facebook has nearly half of the patents to be part of their arsenal.
To break things down in further detail, Facebook will own approximately 650 AOL patents and patent applications, in addition to a license to AOL patents, while Microsoft will proudly hold around 275 AOL patents and applications, and a license to the approximately 650 AOL patents and applications which are in possession of Facebook now. [Press Release]