Bending Spoons Eyes US$1.4 billion AOL Purchase from Yahoo

Yahoo, controlled by the investment corporation Apollo Global Management, is in advanced talks to sell the media brand AOL, say sources familiar with the matter to Reuters. Italian application developer Bending Spoons is the potential buyer in a transaction estimated at about US$1.4 billion.

Bending Spoons has solidified its position in the EU technology ecosystem by acquiring technology assets with potential for restructuring and growth. By integrating AOL, Bending Spoons would not only add a brand with significant historical recognition but also absorb its substantial user base. This is a strategic asset for its suite of mobile applications, which serves 300 million monthly users. In February 2024, the company completed a financing round that valued it at US$2.55 billion, achieving "unicorn" status.

The transaction would represent a new chapter for the three entities. For AOL, it would signify a new phase under an owner focused on revitalizing digital assets. The company, known for its email service, was part of the largest merger in history in 2000 when it combined with Time Warner.

For Yahoo, selling AOL would allow it to concentrate on other divisions. Apollo Global Management, a private equity corporation, owns a 90% stake in Yahoo, which it acquired from Verizon in 2021 for US$5 billion. 

AOL's portfolio offers diversified value beyond its media portal. The company generates revenue through two primary channels: digital advertising and a suite of high-value subscription services. These services include identity theft protection with LifeLock, password management with LastPass, and cybersecurity with McAfee Multi Access, among other products. 

Recent data indicates a revitalization in AOL.com's web traffic. A source familiar with the company's metrics, cited by Reuters, reported 20% year-over-year growth among users in the 25- to 54-year-old demographic. This growth is attributed to content diversification, including the addition of new categories such as health, science, technology, and finance.

The potential purchase of AOL follows a series of strategic acquisitions by Bending Spoons, including the file-sharing service WeTransfer and a more recent deal to acquire the video platform Vimeo for US$1.38 billion.

While negotiations are in an advanced stage, sources say that a definitive agreement has not been signed and the talks could still fail.