Yahoo Reportedly Nears $1.4 Billion Sale Of AOL After Internet Pioneer Ends Dial-Up Era And Closes Another Chapter – Apollo Asset Management (NYSE:APO), Verizon Communications (NYSE:VZ)
Yahoo is reportedly close to selling AOL to Italian technology firm Bending Spoons for about $1.4 billion, a move that would hand off one of the most iconic names of the early internet just weeks after AOL retired its dial-up service.
AOL May Soon Find A New Owner
Yahoo, backed by Apollo Global Management (NYSE:APO), is in advanced negotiations to sell AOL to Milan-based technology company Bending Spoons, reported Reuters, citing four people familiar with the matter.
The deal, valued at around $1.4 billion, has not yet been finalized and the sources cautioned it could still fall apart.
Yahoo did not immediately respond to Benzinga’s request for comments.
AOL, once a dominant force in online communication, is currently part of Yahoo, which Apollo acquired from Verizon Communications (NYSE:VZ) in 2021 for $5 billion.
The potential sale underscores how far the brand has shifted since its heyday in the 1990s and early 2000s.
From ‘You’ve Got Mail’ To A Shrinking Business
AOL’s iconic dial-up tones and “You’ve Got Mail” notifications defined an era of early internet adoption.
At its peak, the company merged with Time Warner in 2000 in what was then the largest merger in U.S. history. The deal was later regarded as one of the most disastrous corporate combinations, plagued by writedowns and regulatory scrutiny.
In the past few years, AOL has pivoted to digital subscriptions and advertising revenue.
Its offerings include LifeLock identity protection, LastPass password management and McAfee malware defense.
The company also reported a 20% year-over-year increase in website traffic among users aged 25 to 54, driven by new content verticals on AOL.com, including health, tech, crime and lifestyle.
Bending Spoons’ Acquisition Streak
For Bending Spoons, known for its popular apps and rapid acquisition strategy, buying AOL would expand its global reach.
The company, valued at $2.55 billion after a 2024 funding round, acquired file-sharing service WeTransfer and struck a $1.38 billion deal to take video platform Vimeo private.
Its products reportedly serve 300 million monthly users.
Bending Spoons CEO Luca Ferrari has said the firm is preparing itself for a possible U.S. IPO, though no firm plans are in place.
End Of The Dial-Up Era
The reported sale comes just weeks after AOL officially shut down its dial-up internet service on Sept. 30. Once a gateway for millions of Americans to access the web, the service had dwindled to only about 163,000 users nationwide.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.