Bending Spoons set to acquire internet pioneer AOL

The deal is being made with Yahoo, which currently owns AOL and is backed by private equity firm Apollo. While the exact purchase price hasn’t been shared, Bending Spoons revealed that it secured $2.8 billion in debt financing to fund this acquisition and future company takeovers.

According to Reuters, the deal values AOL at over $1.4 billion.

Founded in 2013, Bending Spoons is known for buying tech companies and improving their financial performance, often through restructuring and cost-cutting.

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Just last month, the Milan-based company bought U.S. video-sharing platform Vimeo for about $1.38 billion a move that will take Vimeo private.

Luca Ferrari, Bending Spoons CEO and co-founder, said Bending Spoons would invest "significantly” in AOL, which was an internet giant in the 1990s.

He said: "AOL is an iconic, beloved business that’s in good health, has stood the test of time, and we believe has unexpressed potential.

“By our estimation, AOL is one of the top ten most-used email providers in the world, with a highly retained customer base counting around 8 million daily and 30 million monthly active users.

"We intend to invest significantly to help the product and the business flourish. Bending Spoons has never sold an acquired business—we’re confident we’re the right long-term steward for AOL, and look forward to serving its large, loyal customer base for many years to come.”

Jim Lanzone, CEO, Yahoo, said: "AOL and Yahoo share a great deal of history, and our new team has enjoyed the opportunity to return AOL to growth.

“This transaction will allow us to focus more deeply on the aggressive roadmaps we have planned for Yahoo’s core products moving forward, while ensuring AOL continues to thrive under new ownership.”

Reed Rayman, chair of Yahoo’s board of directors and partner at Apollo, said: “We believe this transaction positions AOL well for its next phase, while Yahoo accelerates investment in its flagship properties and AI-powered experiences.”

According to The Information, AOL was valued at over $100 billion in 2000 when it merged with Time Warner. Later, Time Warner separated AOL, which then merged with Yahoo. In 2021, Yahoo (and AOL) were bought by the investment firm Apollo.

About Bending Spoons

Bending Spoons is a tech company based in Milan, Italy. It focuses on buying and improving struggling digital businesses. The company uses a unique model that combines private equity strategies with software development, aiming for operational excellence and strong use of AI technology. Bending Spoons has successfully turned apps like Evernote and Remini into profitable ventures. It often acquires existing software or digital platforms especially those that are underperforming or have steady cash flow and works to grow them. The company also shares key services like HR and finance across all its apps to boost efficiency and performance.