Bending Spoons in Advanced Talks to Acquire AOL from Yahoo for $1.4 Billion
Bending Spoons in Advanced Talks to Acquire AOL for $1.4 Billion
In a significant move within the tech industry, Yahoo, under the ownership of Apollo Global Management, is reportedly in advanced negotiations to sell the iconic media brand AOL. Sources familiar with the discussions have revealed to Reuters that Italian app developer Bending Spoons is the frontrunner to acquire AOL in a deal estimated at approximately $1.4 billion.
Bending Spoons has made a name for itself in the European technology landscape by strategically acquiring assets ripe for restructuring and growth. The potential integration of AOL would not only enhance Bending Spoons’ brand portfolio but also provide access to a substantial user base, complementing its suite of mobile applications that currently serves around 300 million monthly users. The company recently achieved “unicorn” status, with a valuation of $2.55 billion following a financing round in February 2024.
For AOL, this acquisition could mark a transformative new chapter. Once a dominant player in the digital landscape, known primarily for its email service, AOL was part of the largest merger in history when it joined forces with Time Warner in 2000. Under Bending Spoons, AOL could see a revitalization focused on enhancing its digital assets.
The sale would also allow Yahoo to streamline its operations, concentrating on its other divisions. Apollo Global Management, which acquired a 90% stake in Yahoo from Verizon in 2021 for $5 billion, is looking to optimize its portfolio by divesting AOL.
AOL’s diverse revenue streams extend beyond its media portal, encompassing digital advertising and a range of subscription services. These include identity theft protection through LifeLock, password management with LastPass, and cybersecurity solutions via McAfee Multi Access. Recent data indicates a resurgence in AOL.com’s web traffic, with a reported 20% year-over-year growth among users aged 25 to 54, attributed to a broader content strategy that now includes health, science, technology, and finance.
The potential acquisition follows Bending Spoons’ recent strategic purchases, including the file-sharing service WeTransfer and the video platform Vimeo for $1.38 billion.
While the negotiations are progressing, sources caution that a definitive agreement has yet to be signed, and the talks could still fall through. As the tech world watches closely, the outcome of this potential acquisition could reshape the landscape for both AOL and Bending Spoons.
