AOL sells $1 billion in patents

NEW YORK—AOL Inc. will get US$1.06 billion by selling more than 800 patents to Microsoft Corp. following an auction of the intellectual property.

AOL promises to return a “significant portion” of the proceeds to its shareholders once the deal closes.

The online media company will receive a licence to continue using the patents being sold to Microsoft and will still have 300 patents in its portfolio.

The transaction, which is subject to review under U.S. competition law, is expected to close by the end of 2012.