Italian tech group Bending Spoons is set to acquire web portal and email provider AOL from Yahoo in a $2.8 billion (A$4.7 billion) deal, marking a significant expansion of its digital portfolio.

The deal is expected to close by the end of 2025, pending regulatory approval.

“AOL is an iconic business with unexpressed potential,” said Bending Spoons CEO Luca Ferrari.

“It ranks among the top ten most-used email providers globally, with around 8 million daily and 30 million monthly active users. We plan to invest significantly to help the product and the business flourish.”

For Yahoo, the move allows a stronger focus on its core products and AI initiatives.

“This transaction enables us to accelerate our roadmaps while ensuring AOL continues to thrive under new ownership,” said Yahoo CEO Jim Lanzone.

Bending Spoons CEO Luca Ferrari

AOL joins a growing list of well-known brands acquired by Bending Spoons, which includes Brightcove, Evernote, Remini and the recent agreement to acquire Vimeo.

The company has a track record of long-term ownership, aiming to “hold forever” and transform each acquisition through technology upgrades, UI redesign and enhanced marketing and monetisation.

Bending Spoons claims its digital products now serve over a billion people globally, with more than 300 million monthly active users.

To finance the AOL acquisition and future expansion, the Italian company secured a $2.8 billion (A$4.7 billion) debt package through leading banks, including Banco BPM, BNP Paribas, Goldman Sachs, HSBC, J.P. Morgan and Wells Fargo.

The acquisition will be guided by financial and legal advisors, with Greenhill, Mizuho, Wells Fargo, Willkie Farr & Gallagher LLP, and EY Advisory assisting Bending Spoons, and J.P. Morgan, Allen & Company, Latham & Watkins LLP, and Paul, Weiss advising Yahoo.