Vintage tech brand AOL is being acquired by Italian technology company Bending Spoons from private-equity firm Apollo Global Management, marking the latest in a series of ownership changes for the internet pioneer.
Bending Spoons, based in Italy and also the owner of the note-organising app Evernote and photo-sharing app Remini, recently secured $2.8 billion in debt financing to help fund the deal and other investments.
Apollo was previously reported to be exploring a sale of AOL, with familiar sources indicating a potential valuation of around $1.5 billion, reports The Wall Street Journal. AOL generates around $400 million in annual earnings before interest, taxes, depreciation and amortisation, with revenue north of $500 million, according to people familiar with the matter.
“AOL is an important and beloved business with a brand that has stood the test of time,” Bending Spoons said in an announcement, adding that it intends to be the company’s long-term home.
Ravamp and retain
The company stated its approach for AOL and other investments is to revamp and retain businesses. Bending Spoons also owns video distribution and analytics company Brightcove and said in September that it would buy video platform Vimeo for $1.38 billion.
AOL currently has around eight million daily active users and maintains a high customer retention rate, according to Bending Spoons. Its main business lines now include software for internet privacy and protection, as well as the AOL.com website and email domain.
Once known for its AIM chat function and free internet CDs, AOL stopped its dial-up internet service last month. The company merged with Time Warner in 2001 in a $100 billion deal. In 2015, Verizon acquired AOL for $4.4 billion, purchasing Yahoo two years later for $4.8 billion. Apollo then spent $5 billion to buy both AOL and Yahoo from Verizon in 2021.
