Yahoo is in advanced talks to sell AOL to Italian technology company Bending Spoons for about $1.4 billion, four people familiar with the matter told Reuters, a deal that would underscore how one of the internet’s most iconic names may be leaving American hands for a European upstart.
The Milan-based app developer is negotiating to buy the legacy media brand, though sources cautioned that no final agreement has been signed and talks could still collapse. Yahoo, controlled by private equity firm Apollo Global Management, acquired AOL as part of a $5 billion deal in 2021 when Apollo bought a 90% stake in Yahoo from Verizon.
AOL’s Long Decline
AOL remains etched in internet history as one of the pioneers of online consumer services, famous for its “You’ve Got Mail” notification and dial-up access. In 2000, it merged with Time Warner in a $160 billion deal, then the largest in history, but the merger quickly collapsed under regulatory probes and massive writedowns.
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In the years since, AOL lost its dominance to younger tech giants such as Google and Facebook, but still generates revenue through digital advertising and subscription services, including LifeLock identity theft protection, LastPass password management, and McAfee Multi Access malware protection.
A source familiar with AOL’s recent performance said its website traffic grew 20% year-over-year among users aged 25 to 54, outpacing growth among older audiences. The increase was fueled by AOL.com expanding into new content verticals such as Health, Fitness, Animals, Science & Tech, Home & Garden, True Crime, Local, and light entertainment.
Bending Spoons’ Global Expansion
For Bending Spoons, acquiring AOL would add to a fast-growing portfolio of international assets. Founded in 2013, the Milan-based company now counts 300 million monthly users and has become one of Europe’s rare tech “unicorns,” with a valuation of $2.55 billion after a February 2024 funding round.
The company has pursued an aggressive strategy of acquiring struggling but recognizable technology platforms. Last year, it purchased file-sharing service WeTransfer, and just last month it agreed to buy video platform Vimeo for $1.38 billion — its largest deal to date.
Bending Spoons’ co-founder and CEO Luca Ferrari has said the company is working toward positioning itself for a potential U.S. IPO, though no firm timeline is in place.
Comparative Trade Angle
If completed, the AOL sale would be more than just the passing of an American internet relic to a European buyer. It would mark a symbolic shift in global tech trade, where U.S. legacy platforms, once dominant worldwide, are being absorbed by emerging European players looking to expand their digital footprint.
Unlike in past decades when European tech largely played catch-up to Silicon Valley, acquisitions such as Vimeo and potentially AOL show firms like Bending Spoons leveraging U.S. assets to gain global reach. Bankers see the company as one of the few European tech firms capable of challenging American dominance in consumer internet services.
The deal fits a pattern of American private equity divesting legacy media names as growth slows, especially for Apollo, which has been streamlining Yahoo’s portfolio. But it also signals how European capital and strategy are increasingly flowing westward to capture once-dominant U.S. brands and reposition them for the mobile-first, subscription-driven economy. If sealed, the acquisition is expected to reshape Bending Spoons’ profile.