Bending Spoons Agrees to Buy AOL for $1.5B

Milan-based Bending Spoons has agreed to buy AOL from Apollo-backed Yahoo for about $1.5 billion, with the deal expected to close by the end of the year subject to customary closing conditions and regulatory approvals. The purchase is being funded by a $2.8 billion debt financing package from a global banking syndicate that Bending Spoons said will also support future M&A and R&D. AOL remains a cash-generating business, reporting more than $500 million in revenue and roughly $400 million in earnings, and serving about 8 million daily and 30 million monthly active users; it recently ended its decades-old dial-up service. Bending Spoons, which has acquired a string of digital companies including Evernote, Vimeo, WeTransfer, Meetup and Remini, said it will invest significantly in AOL and hold the brand long-term, though some past takeovers have resulted in layoffs or higher prices for customers. The sale continues AOL’s long ownership shuffle following Time Warner, Verizon and Apollo and positions the storied portal for a technology-led turnaround.