28/Jul/2014 - Last News Update: 17:04

AOL to pass on proceeds of Microsoft patent sale

Category: Business

Published: 9th May 2012 15:44:26

US internet firm AOL has said it intends to hand to shareholders all of the proceeds from selling 800 patents for $1.06bn (£659m) to Microsoft.

The company also said that net income for the first quarter rose to $21m from $4.7m in the same period last year, beating expectations.

Shares in New York rose 4% on the results.

After AOL sold the patents, Microsoft turned around and sold some of them to Facebook for $550m.

When the sale was announced, AOL said it expected to turn over "a majority" of the proceeds to investors, but it has now confirmed that it will hand over all of the money raised.

Overall, AOL said advertising revenues grew 5% year-on-year to $330.1m.

But display advertising - flashy web ads that command high prices - saw revenues fall 1% in the US.

AOL is making a big bet that display advertising will help it recover its formerly dominant position on the internet.

"I was not happy with the domestic display over the course of the first quarter," AOL chief executive Tim Armstrong said. "A lot of it was a sales strategy off tune."

Its profits include a $10.8m gain from acquiring a controlling stake in Ad.com Japan.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. AOL to pass on proceeds of Microsoft patent sale [Online] (Updated 9th May 2012)
Available at: http://www.ukwirednews.com/news/1427450/AOL-to-pass-on-proceeds-of-Microsoft-patent-sale [Accessed 28th Jul 2014]

News In Other Categories

  • Russia offers $110,000 to crack Tor anonymous network

    Russia has offered 3.9m roubles ($110,000; £65,000) in a contest seeking a way to crack the identities of users of the Tor network.
  • Welsh theatre company launches translation app

    An app to help theatre-goers follow plays in other languages is being launched by a theatre company in Wales.
  • Welsh theatre company launches translation app

    An app to help theatre-goers follow plays in other languages is being launched by a theatre company in Wales.
  • Shale gas 'could boost Scottish economy'

    Scotland may contain "significant" shale oil and gas resources which could provide an economic boost if successfully exploited, according to a report.
  • Patrick Doherty 'tried to suffocate partner' in Belleeks

    A man tried to kill his partner by suffocating her with a plastic bag, a quilt and duct tape in front of his elderly mother, a court has been told.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com