Background on Key Players
Yahoo: A well-known name from the early internet era, currently under the control of Apollo Global Management.
Apollo Global Management: A private equity firm that acquired a 90% stake in Yahoo from Verizon for $5 billion in 2021.
Bending Spoons: A prominent European tech company known for acquiring struggling technology businesses and revitalizing them.
Details of the Proposed Sale
Yahoo is in advanced talks to sell AOL to Milan-based Bending Spoons for approximately $1.4 billion, according to four sources familiar with the matter.
The deal would mark a new chapter for the once-internet giant, famous for its email service and “You’ve Got Mail” notification. AOL was involved in the largest merger in history when it merged with Time Warner in 2000, but the deal faced regulatory scrutiny and asset devaluation.
Bending Spoons’ Recent Success
Bending Spoons has become one of Europe’s leading tech companies, consistently acquiring struggling technology businesses and revitalizing them. In February 2024, the company completed a funding round that valued it at $2.55 billion, making it a “unicorn” – a privately held company valued at $1 billion or more.
Impact on AOL’s User Base
The acquisition would add AOL’s extensive user base to Bending Spoons’ mobile app portfolio. AOL generates revenue through advertising and subscription services, including LifeLock identity theft protection, LastPass password management, and McAfee Multi Access malware protection.
Recently, AOL’s website traffic has grown by 20% year-over-year among users aged 25 to 54, outpacing growth in the over-55 age group, according to a source familiar with AOL’s results.
This growth has been driven by the introduction of new content categories on AOL.com, including Health, Fitness, Pets, Science & Tech, Home & Garden, Lighter Side, True Crime, and Local, among others.
Bending Spoons’ Recent Acquisitions
Bending Spoons, with 300 million monthly users, has recently made several acquisitions, including the file-sharing service WeTransfer. Last month, it reached an agreement to take Vimeo public for $1.38 billion, its largest acquisition to date.
Potential IPO for Bending Spoons
Bankers consider Bending Spoons a candidate for a U.S. IPO. CEO Luca Ferrari, Bending Spoons’ co-founder since 2013, told Reuters last year that there were no firm plans for an IPO but that the company was preparing for it and looking beyond Europe.
Key Questions and Answers
- Who are the key players in this deal? Yahoo, currently under Apollo Global Management’s control, and Italian tech firm Bending Spoons.
- What is the proposed sale amount? Approximately $1.4 billion.
- What makes Bending Spoons a notable tech company? Its strategy of acquiring struggling technology businesses and revitalizing them, leading to a unicorn valuation of $2.55 billion.
- How would this acquisition impact AOL’s user base? It would add AOL’s extensive user base to Bending Spoons’ mobile app portfolio, enhancing its revenue streams through advertising and subscription services.
- What recent acquisitions has Bending Spoons made? Recent acquisitions include WeTransfer and an agreement to take Vimeo public for $1.38 billion.
- Is Bending Spoons considering a potential IPO? Bankers consider Bending Spoons a candidate for a U.S. IPO, though there are no firm plans as of now.
