Bending Spoons Acquires AOL in Surprise Move
▼ Summary
– Bending Spoons is acquiring AOL from Yahoo after securing a $2.8 billion debt financing package, continuing its trend of purchasing digital businesses.
– AOL has changed ownership multiple times, including mergers with Time Warner and Verizon, and was most recently under Yahoo after a 2021 sale to Apollo Global Management.
– The company recently discontinued its dial-up internet service but continues to operate a web portal and email service for users.
– Bending Spoons plans to invest significantly in AOL and has a history of implementing layoffs and price increases after previous acquisitions.
– Bending Spoons’ CEO states the company has never sold an acquired business and intends to serve AOL’s customer base for the long term.
The digital landscape is set for another significant shift as Bending Spoons, the ambitious Italian software developer, confirms its intention to acquire the iconic internet brand AOL from Yahoo. This unexpected move follows a successful $2.8 billion debt financing arrangement, adding AOL to a growing portfolio that already includes names like Evernote, MeetUp, and WeTransfer, with Vimeo also expected to join soon. This acquisition marks the latest chapter in AOL’s long and complex corporate journey.
AOL’s ownership has changed hands numerous times over the last twenty years. Its most notable corporate merger was with media titan Time Warner in 2001, a deal that became a textbook case of a challenging integration. After being spun off, the company was purchased by telecommunications giant Verizon in 2015 for a substantial $4.4 billion. Verizon later combined AOL with Yahoo to form a new entity named Oath, which was subsequently sold to the private equity firm Apollo Global Management in a transaction valued at approximately $5 billion in 2021. This series of transitions ultimately placed AOL under the Yahoo corporate structure.
Despite its evolution, AOL continues to operate its classic web portal and email service for a dedicated user base. In a symbolic end of an era, the company recently discontinued its pioneering dial-up internet service, a technology it championed for over thirty years and that introduced millions to the online world.
Bending Spoons has developed a reputation for its aggressive acquisition strategy in the tech sector. Its track record with previous purchases has sometimes involved organizational restructuring, including staff reductions, and in certain instances, the introduction of increased costs for the end-user. The company anticipates finalizing the AOL purchase before the year concludes. Bending Spoons CEO Luca Ferrari has publicly committed to making substantial investments aimed at revitalizing the AOL product and ensuring its commercial success.
While industry observers might speculate about AOL’s future ownership, Ferrari was keen to emphasize a long-term vision in the official announcement. He pointed out that Bending Spoons has a firm policy of retaining the businesses it acquires, having never sold one off. The company pledges to support and serve AOL’s extensive and devoted customer community for the foreseeable future.
(Source: The Verge)
