/// Yahoo and Facebook Patent War Officially Over: The Press Release

July 6, 2012  |  All Things Digital


As I reported earlier today , Yahoo and Facebook confirmed in a press release after the markets closed that they had settled their cantankerous patent lawsuit. As part of the deal, the pair have also agreed to dramatically expand their content distribution and data partnership, as well as add a joint advertising effort to it. The companies are calling it a “strategic alliance.” Peace now reigns in Silicon Valley between the Internet portal and the social networking giant, which had — previous to this ugly legal kerfuffle — been longtime partners. We can now go back to our regularly scheduled fighting between Facebook and Google, Google and Apple, Apple and Amazon, Amazon and … oh, you get my point here . While Yahoo and Facebook declined to provide a whole lot of details about the agreement, sources said it encompasses cross-licensing of some key patents and the possibility that Facebook could buy or license more such intellectual property from Yahoo in the future. In addition, as I previously reported, no actual cash payment will change hands under terms of the deal over the patents, in contrast to the $550 million that Facebook paid Microsoft recently in another transaction related to AOL patents. But Facebook and Yahoo hope there will be significant upside in several possible advertising opportunities and other business deals between the pair that could yield large revenues if executed well. Discussions to settle the lawsuits — negotiated by Yahoo interim CEO Ross Levinsohn and Facebook COO Sheryl Sandberg, among others — began almost as soon as Yahoo’s board ousted former CEO Scott Thompson, which I reported on in early June . Thompson reportedly promised Yahoo directors a big financial payoff of many billions of dollars from the patent lawsuits against Facebook. Instead, the pair decided to settle the case, which had been a drag on Yahoo’s tech reputation and was also not helping Facebook much, either. Plus, continuing it would have been pricey and, probably, pointless in the end. Here’s the press release: Yahoo! and Facebook Launch Strategic Alliance and Resolve Patent Dispute SUNNYVALE AND MENLO PARK, CALIF. –JULY 6, 2012 – Yahoo! (NASDAQ: YHOO) and Facebook (NASDAQ: FB) today announced that they have entered into definitive agreements that launch a new advertising partnership, extend and expand distribution arrangements, and settle all pending patent claims between the companies

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Yahoo and Facebook Patent War Officially Over: The Press Release


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