Yahoo Nears $1.4 Billion Deal to Sell AOL to Italy’s Bending Spoons

Yahoo is reportedly on the brink of selling AOL to Italian technology firm Bending Spoons in a deal valued at around $1.4 billion, according to sources familiar with the matter. The sale would mark a dramatic shift for AOL, once a titan of the early internet, and reflect Yahoo’s ongoing strategy to reshape its digital portfolio.

Key Takeaways

• Yahoo is in advanced talks to sell AOL to Bending Spoons for about $1.4 billion.
• Bending Spoons, an Italian tech company, would acquire one of the most iconic brands from the internet’s early days.
• The sale follows Yahoo’s focus on streamlining business operations and embracing new digital strategies.

Background: AOL’s Journey From Internet Pioneer to Acquisition Target

Founded in 1985, AOL (America Online) played a massive role in popularizing internet access in the 1990s, especially in the United States. Known for its dial-up service and iconic “You’ve got mail” alerts, AOL was at one point the nation’s dominant Internet service provider. Over the decades, AOL struggled to adapt to a rapidly evolving digital landscape, eventually getting acquired by a series of companies, most recently under the Yahoo brand backed by Apollo Global Management.

Details of the Proposed Deal

While the companies have not publicly confirmed the negotiations, sources suggest that the deal, valued at approximately $1.4 billion, is in advanced stages. The agreement would see Bending Spoons, an Italian company best known for mobile applications and AI technology, become the new steward for the AOL brand.

This prospective sale comes as Yahoo seeks to divest non-core assets and focus on growth areas such as digital media, email, and online finance. Apollo Global Management, which took control of Yahoo in 2021, has been keen on optimizing the value of its digital holdings.

What Is Bending Spoons?

Bending Spoons is a Milan-based tech startup founded in 2013, focused on developing software, particularly mobile applications and AI-powered tools. The company operates popular apps in health, productivity, and video editing, amassing millions of users worldwide. This deal would mark Bending Spoons’ most high-profile acquisition and a significant foray into established, legacy internet brands.

Implications for the Tech Industry

Should the acquisition finalize, it would:

1. Mark a new era for both AOL and Bending Spoons—ushering in technological upgrades and new usage for the AOL brand.
2. Highlight the ongoing reshuffling among legacy internet properties striving to stay relevant.
3. Underscore the trend of private equity and tech startups acquiring and revamping iconic tech brands.

The Road Ahead

If successful, this deal is expected to spark significant changes at AOL, including potential rebranding efforts, integration of new technologies, and possible expansion into European digital markets. For Yahoo and Apollo Global Management, the sale would bring a sizable windfall and define further strategic moves in the digital sector.

The coming weeks will determine if negotiations will be finalized and what the next chapter will hold for AOL under new ownership.