USA based AOL has completed its previously announced billion dollar deal to sell over 800 patents to Microsoft.

The transaction includes the sale of over 800 patents and their related patent applications, and grants Microsoft a non-exclusive license to its retained patent portfolio for aggregate proceeds of $1.056 billion in cash.

"The closing of this transaction represents another major step for AOL in increasing value for our shareholders," said Tim Armstrong, Chairman and CEO. "As our track record has shown, you should expect us to continue our momentum of creating and unlocking shareholder value through continued operational improvements and executing on our strategy."

As a part of the transaction AOL also received a license to the patents being sold to Microsoft. AOL continues to hold a patent portfolio of over 300 patents and patent applications.

As previously announced, AOL is committed to returning 100% of the patent proceeds to shareholders. AOL's Board and management team are currently working on determining the most efficient and expedient method to return the proceeds of the patent transaction. AOL expects to provide additional details to all shareholders by the end of this month.