AOL Acquired by Yahoo for $1.5 Billion
A New Chapter for AOL: A $1.5 Billion Acquisition
Once the gateway to the internet for millions, AOL is making headlines again — this time for a significant deal that could reshape its legacy. After years under Yahoo’s ownership, the iconic online pioneer is being acquired by a European tech firm aiming to revitalize the brand. This development raises questions about whether this marks the beginning of AOL’s long-awaited transformation in the modern digital era.
Bending Spoons Acquires AOL from Apollo Global Management
AOL is set to embark on a new chapter under the ownership of Bending Spoons, an Italian tech firm. The company is acquiring AOL from Apollo Global Management, the private-equity giant that purchased Yahoo — including the AOL brand — from Verizon in 2021 for $5 billion. While the exact terms of the deal remain undisclosed, reports suggest the acquisition is valued at approximately $1.5 billion. The transaction is expected to close by the end of 2025, pending regulatory and customary approvals.
To support the purchase and fuel future mergers and acquisitions, Bending Spoons has secured a $2.8 billion debt financing package. This funding comes from major global lenders such as BNP Paribas, Goldman Sachs, HSBC, J.P. Morgan, Mitsubishi UFJ Financial Group, Mizuho, Société Générale, Crédit Agricole CIB, and Wells Fargo.
Bending Spoons Believes in AOL’s Potential
Despite the challenges faced by AOL over the years, the company remains a profitable digital brand. According to The Wall Street Journal, AOL generates roughly $400 million in annual EBITDA and more than $500 million in yearly revenue. The platform continues to attract around 8 million daily users and 30 million monthly users across its news, entertainment, games, and email services, based on figures provided by Bending Spoons.
Luca Ferrari, CEO and co-founder of Bending Spoons, expressed confidence in the brand’s future. “AOL is an iconic, beloved business that’s in good health, has stood the test of time, and we believe has unexpressed potential,” he said. “We intend to invest significantly to help the product and the business flourish.”
Bending Spoons has never sold an acquired business, and Ferrari emphasized that the company is confident it is the right long-term steward for AOL. He added that the firm looks forward to serving AOL’s large, loyal customer base for many years to come.
AOL’s Sale Allows Yahoo to Focus on Core Business
The sale of AOL represents a strategic shift for Yahoo, allowing the company to focus more deeply on its core digital products and future innovation. With Bending Spoons taking ownership of AOL, Yahoo can now redirect resources toward strengthening its flagship platforms and advancing its AI-powered experiences.
Jim Lanzone, CEO of Yahoo Inc., highlighted the significance of the transaction. “AOL and Yahoo share a great deal of history, and our new team has enjoyed the opportunity to return AOL to growth,” he said. “This transaction will allow us to focus more deeply on the aggressive roadmaps we have planned for Yahoo’s core products moving forward, while ensuring AOL continues to thrive under new ownership.”
Reed Rayman, chair of Yahoo’s board and partner at Apollo, echoed these sentiments. He noted that Apollo’s 2021 acquisition of Yahoo spurred “transformational reinvestment in its digital media assets and consumer technology, producing strong performance across Yahoo’s properties.” He added that the transaction positions AOL well for its next phase, while Yahoo accelerates investment in its flagship properties and AI-powered experiences.
AOL Joins Bending Spoons’ Expanding Digital Empire
Founded in 1985 as Quantum Computer Services before rebranding to America Online (AOL), the company played a pivotal role in the early internet age. It became known for its dial-up connections and the nostalgic “You’ve Got Mail” greeting. AOL dominated the online landscape throughout the 1990s, but its influence declined after the ill-fated Time Warner merger in 2001. As broadband overtook dial-up, AOL’s dominance faded, leading to its spin-off as an independent company in 2009.
Verizon Communications later acquired AOL in 2015 for about $4.4 billion, merging it with Yahoo to create Oath, which was later rebranded as Verizon Media. That era ended in 2021 when Apollo Global Management purchased Verizon Media — including both AOL and Yahoo — for $5 billion, renaming the group Yahoo Inc.
Now, AOL is changing hands once again, becoming part of Bending Spoons’ growing digital empire. Just last month, the Milan-based tech firm announced a $1.38 billion cash deal to acquire video-hosting platform Vimeo, expected to close in the fourth quarter of 2025, pending approvals. Bending Spoons’ portfolio already includes Brightcove, Evernote, komoot, Meetup, Remini, StreamYard, and WeTransfer — a collection of platforms that together boast over 300 million monthly active users and 10 million paying customers worldwide.
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