On October 31, the Italian tech unicorn Bending Spoons announced it had acquired the early web giant AOL from Yahoo!, itself owned by the investment firm Apollo Global Management. The purchase led to a surge in Bending Spoons’ valuation, which climbed to $11 billion after a significant fundraising round.
This acquisition is the latest in a string of recent takeovers, including Vimeo, WeTransfer, and other well-known digital platforms, as the company rapidly expands its portfolio.
The Italian tech company secured a $2.8 billion debt financing package to support the recent acquisition. The package was provided by a consortium of banks, including BNP Paribas, Goldman Sachs, HSBC, and UniCredit. This latest round brings Bending Spoons’ total debt for 2025 so far to $4 billion, underlining the scale of its recent expansion.
Why AOL makes sense for them
Bending Spoons is one of Europe’s fastest-growing technology firms. Its business model centers on acquiring struggling digital businesses and revamping them; it usually targets companies with a steady cash flow (often from subscription), a loyal user base and untapped potential.
“We acquire digital technology companies, envision their long-term success and work together to turn that vision into a reality. We do what needs to be done, even when achieving our goals requires radical change,” explained the CEO of Bending Spoons, Luca Ferrari, in an interview with Forbes Italia.
In that regard, AOL fits the bill perfectly: it’s large, well-known, and under-monetized. Acquiring AOL gives Bending Spoons a solid user base and valuable email and content platforms that generate steady traffic and advertising revenue. By modernizing AOL’s products and integrating them into its ecosystem, Bending Spoons can diversify revenue sources for a relatively low cost.
A confidence boost from investors
A day after the acquisition, Bending Spoons’ valuation jumped to $11 billion, following a $710 million equity fundraising round led by T. Rowe Price, with participation from Baillie Gifford, Cox Enterprises, Durable Capital Partners, Fidelity and others. Bending Spoons had last been valued at $2.55 billion in a 2024 funding round.
The $710 million funding comprised $270 million in new capital, and a $440 million secondary share sale by existing investors.
The Italian unicorn now counts 150 million active users across its apps and platforms and generates more than $600 million in yearly revenue.
Investing in future growth
For now, Bending Spoons plans to use these new revenues to develop its AI capabilities and continue expanding its portfolio of digital products for both consumers and businesses.
The company’s approach has raised some controversy, as it faces criticism for a string of radical cuts at the firms it acquires: Evernote, the note-taking app, lost almost its entire staff, while 75% of WeTransfer’s workforce was laid off. Ferrari has defended the strategy, arguing that restructuring is necessary for the long-term viability of these companies.
A Signal for Europe’s Tech Scene
As Ferrari notes, the company is still “early in [its] journey,” Bending Spoons appears to be positioning itself for an IPO, most likely in the United States. Its soaring valuation and strong investor backing both suggest the company is gearing up for another phase of expansion.
As one of Europe’s most prominent unicorns, Bending Spoons has become a reference point for EU tech ambitions. Its rapid rise – and the fact that it has never so far sold a business it has acquired – point to a maturing and more confident European tech ecosystem.