Bending Spoons, the acquisitive Italian software conglomerate, is acquiring AOL, one of the internet’s most well known early companies.
Bending Spoons is buying AOL from Yahoo, which is backed by private equity firm Apollo for an undisclosed sum, though the Italian firm said it had bagged a $2.8 billion debt financing package to finance the acquisition and future M&A activity.
Reuters, which tipped the deal, previously said the acquisition valued AOL at more than $1.4 billion.
Bending Spoons, founded in 2013, is known for acquiring tech companies and then trying to improve their finances, sometimes by laying off staff.
Last month, the Milan-based firm acquired US video sharing platform Vimeo for around $1.38bn, in a deal which 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 worth over $100 billion by 2000 when it merged with Time Warner, which later spun AOL off, which then merged with Yahoo, which was acquired by Apollo in 2021.
Bending Spoons has previously acquired Vimeo, WeTransfer and Evernote.
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