European mobile app powerhouse Bending Spoons just pulled off one of the year's biggest tech acquisitions, snapping up AOL from Yahoo in a $2.8 billion debt-financed deal that closes by year-end. The move puts the iconic 'You've Got Mail' brand under Italian ownership and signals major consolidation in the legacy internet space.
Bending Spoons just made its biggest bet yet on American internet nostalgia. The Italian app developer announced Wednesday it's acquiring AOL from Yahoo in a $2.8 billion debt-financed deal that transforms one of Europe's largest mobile developers into the steward of perhaps the internet's most recognizable email brand. The acquisition, expected to close by year-end, puts AOL under Italian ownership for the first time in its decades-long corporate journey. Yahoo, backed by private equity giant Apollo, had been shopping the email service as part of its broader portfolio optimization. Reuters first reported the talks earlier this month at a $1.4 billion valuation, though the final price tag nearly doubled with the debt package structure. "AOL is an iconic, beloved business that's in good health, has stood the test of time, and we believe has unexpressed potential," Bending Spoons CEO Luca Ferrari said in the announcement. The numbers tell a compelling story about AOL's enduring relevance. Ferrari revealed the service maintains around 8 million daily active users and 30 million monthly users, making it "one of the top ten most-used email providers in the world" with what he described as a "highly retained customer base." That user loyalty has kept AOL profitable even as its cultural footprint faded from the early 2000s peak when "You've Got Mail" notifications soundtracked America's internet awakening. For Bending Spoons, this represents the crown jewel in an aggressive American acquisition strategy. The Milan-based company has systematically acquired nostalgic tech brands, previously snapping up Vimeo for $1.38 billion and Evernote in 2022. The company also owns Meetup and other former Silicon Valley darlings. "Bending Spoons has never sold an acquired business," Ferrari emphasized, signaling long-term commitment to AOL's 30 million users. The CEO promised "significant investment" to help the product flourish under new ownership. AOL's ownership history reads like a who's who of media conglomerates trying to crack the internet code. Time Warner owned it from 2001 to 2009 during the infamous merger that became a cautionary tale about old media meeting new technology. Verizon Communications held it from 2015 to 2021, integrating AOL into its broader media ambitions before selling to Yahoo as part of a broader strategic shift. The $2.8 billion debt financing package suggests sees serious revenue potential in AOL's user base. While the company hasn't disclosed specific monetization plans, its track record with acquired properties suggests a focus on subscription services and premium features rather than dramatic pivots. The deal still requires regulatory approval and standard closing conditions, but industry observers expect smooth sailing given AOL's position as a legacy service rather than a competitive threat to major players. The timing also benefits from current M&A-friendly conditions in the tech sector.
