Microsoft to buy AOL patent

Microsoft to buy AOL patent

Hi Adam,

First and foremost, I understand why you are asking this. Why would a multi billion dollar company buy patents from a company that is in a downturn?

What benefits would they gain from such an act?

The answer is simple, it is a form of monopolization in the internet business. Like all other aspects in business, whenever you buy out a smaller company, it secures your position in that business area.

Sure AOL is already in its downturn, but buying out your competition is not always about getting the income of the business, buying smaller businesses can gain you a tactical advantage against larger businesses that you consider as a competition;

This also means that any patent Microsoft buys from AOL gives them the advantage of integrating that technology to their own.

Think of it this way, the more patents you take from a smaller business means the less chance your other competitors could use them as leverage against you; In this case, Macintosh.

Thank you.