Yahoo in Talks to Sell AOL to Bending Spoons for $1.4B
Yahoo is in advanced talks to sell its subsidiary, AOL Mail, to Italian technology company Bending Spoons for approximately $1.4 billion. The deal, if finalised, would add AOL Mail's substantial user base to Bending Spoons' portfolio of mobile applications.
Bending Spoons, known for its strategy of acquiring struggling tech companies and revitalising them, has been in negotiations with Yahoo, which is owned by Apollo Global Management. The private equity firm acquired a 90 per cent stake in Yahoo in 2021.
AOL Mail, which generates revenue through advertising and subscription services like LifeLock, LastPass, and McAfee Multi Access, has seen a 20 per cent year-over-year increase in website traffic among users aged 25-54. This growth could make AOL Mail an attractive acquisition target for Bending Spoons. The Italian company has previously acquired tech firms such as WeTransfer and Vimeo, and recently completed a funding round in February 2024, valuing it at $2.55 billion.
If the deal goes through, Bending Spoons will gain AOL Mail's vast user base, potentially expanding its reach and influence in the tech industry. Bankers have also suggested that Bending Spoons could be a candidate for an initial public offering (IPO) in the U.S., following this acquisition.
