Yahoo Set to Sell AOL to Italy’s Bending Spoons for $1.4 Billion in Landmark Deal

Yahoo is reportedly in advanced negotiations to sell AOL, one of the most iconic names from the internet’s early days, to Italian technology firm Bending Spoons for roughly $1.4 billion. This move by Yahoo’s parent company, Apollo Global Management, is seen as a significant reshuffling of legacy internet assets.

Key Takeaways

• AOL, an early internet powerhouse, is close to being sold by Yahoo to Bending Spoons.
• The expected price tag is about $1.4 billion.
• The deal signals a strategic shift by Apollo Global Management, which owns Yahoo.
• Bending Spoons is an Italian technology company known for its popular mobile applications.

Background: AOL’s Journey from Pioneer to Sale

AOL (America Online) was once the leading gateway to the internet for millions, especially in the United States. Throughout the 1990s and early 2000s, its dial-up services, instant messaging, and web portal defined an era of digital communication. However, as competitors emerged and digital consumption patterns shifted, AOL’s influence waned.

AOL was later acquired by Verizon in 2015 for $4.4 billion, bundled with Yahoo, and then both were sold to Apollo Global Management in 2021 for approximately $5 billion. Since then, Apollo has sought to revitalize and streamline these businesses.

About Bending Spoons

Based in Milan, Bending Spoons has grown rapidly as a leading developer of mobile applications. The company’s portfolio includes video editing, fitness, and productivity tools that have achieved widespread popularity in Europe and North America. Acquiring AOL could provide Bending Spoons with access to legacy technology, a vast user base, and significant content assets.

Strategic Implications of the Sale

For Apollo, divesting AOL aligns with a broader strategy of focusing on its core Yahoo properties and other strategic investments. This sale is expected to give Apollo additional capital and reduce its management burden over outdated digital infrastructure.

Bending Spoons, with its track record of digital innovation, may seek to modernize AOL’s remaining assets, rebrand certain properties, or leverage AOL’s content for new product offerings. The deal spotlights a growing interest in American internet legacies by international tech firms seeking greater global presence.

What’s Next?

While both companies have not publicly commented, the talks are said to be in advanced stages. If finalized, the acquisition is expected to close later this year, pending regulatory approvals and final negotiations. Industry watchers suggest the transaction could spark further consolidation or reinvention among other early internet brands.

Table: Timeline of AOL Ownership