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Facebook to buy AOL patents from Microsoft for $550 million


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Facebook has struck a deal with Microsoft to obtain most of the patents Microsoft is acquiring from AOL.

Microsoft earlier this month agreed to pay AOL $1 billion to acquire 800 patents and gain licenses to the remaining 300 patents AOL plans to keep. The sale includes patents related to the Netscape Web browser and many other technologies.

Now, Microsoft and Facebook have agreed to a deal in which Facebook will pay $550 million to Microsoft for 650 AOL patents and patent applications. Facebook will also gain a license to all the AOL patents that Microsoft will retain ownership of, the companies announced today.

The deal is, of course, contingent on the completion of Microsoft's patent purchase from AOL, which is still pending regulatory approval. Facebook is quickly beefing up its patent portfolio in the wake of a lawsuit filed against the company by Yahoo.

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