Yahoo is in advanced negotiations to sell AOL to Italian tech company Bending Spoons in a deal valued at about $1.4 billion, according to four people familiar with the talks. While the discussions are progressing, they warned that no final agreement has been signed and the transaction could still collapse.
Yahoo, majority-owned by Apollo Global Management after acquiring its stake from Verizon in 2021 for $5 billion, has been streamlining its portfolio. The potential divestment would mark another shift for one of the most recognizable brands of the early internet era. AOL, once a dominant force in online services and famously tied to its 2000 merger with Time Warner, has since seen its role diminish in the digital landscape.
For Bending Spoons, based in Milan, the acquisition would represent another high-profile addition to its growing portfolio of digital platforms. The app developer has become a rare Italian unicorn, valued at $2.55 billion following a February 2024 funding round. Known for buying and revitalizing struggling tech companies, it recently struck a $1.38 billion deal to take video platform Vimeo private and previously acquired WeTransfer.
AOL still maintains a substantial user base, generating revenue through advertising and subscription services such as LifeLock, LastPass, and McAfee Multi Access. Its website traffic has recently grown 20% year-over-year among users aged 25 to 54, fueled by new content categories spanning health, fitness, science, local news, and lifestyle topics.
By integrating AOL into its ecosystem—currently serving 300 million monthly users—Bending Spoons could significantly expand its reach ahead of a possible U.S. IPO. CEO Luca Ferrari has said the company is preparing for a listing when the timing is right, underscoring ambitions to move beyond Europe.
Source: Reuters
