Big news in the world of technology today! AOL, a brand name synonymous with the ’90s and an outdated form of surfing the Internet, has finally found a way to make some money: selling more than 800 patents to Microsoft for more than $1 billion dollars. (Microsoft will also license another 300 patents.) This is great news for AOL’s long-term financial prospects, because they’ll be fine as long as they can occasionally sell 800+ patents to another company.
(Well, but for the fact that those additional 300 patents are the only remaining patents AOL has, which means this is actually a huge one-time financial windfall that will mean very little in the long-term unless AOL can use the extra money to turn itself around. They certainly won’t be able to do this again, so they’d better hope it works.)
In other news, Facebook has acquired Instagram for $1 billion in cash and shares. The delightful photo-sharing service (yes, I say delightful, because I really enjoy using it, though I do get why non-users are annoyed by an endless parade of sepia-toned photographs of food that flood Facebook/Twitter/Tumblr) announced in a blog post that it wouldn’t actually change anything for Instagram users, seconding what Mark Zuckerberg’s post says. So — at least for the foreseeable future — you don’t have to worry about your Instagram profile/contacts disappearing or anything of that vein. The news comes less than a week after Instagram’s very successful arrival on Android phones.
This is nothing but smart. One of Facebook’s earliest innovations was adding photos, which became an integral part of how many people used (and continue to use) Facebook. But there haven’t been any new or interesting evolutions or changes to the site’s photo services (though that facial recognition feature was certainly interesting, if thoroughly creepy!). Anecdotally, I’ve seen a lot of people — even people who don’t use various social media platforms all that much — shift over to posting Instagram photos on Facebook. This means that, eventually, you will be able to post Facebook photos using some of the nifty Instagram filters and tools. It’s a positive for the companies and for users, which is nice to say about one company acquiring another.
One tech company of the past sells off a chunk of itself to another tech company straddling the past and the present; another tech company (one of the three modern heavyweights, along with Apple and Google) makes a smart investment that could pay off by improving one of its services. Good thing they happened on the same day, making the contrast nice and tidy.