In 2001, America Online merged with Time Warner in a historic $165 billion deal. Fast forward to this year, the remnants of AOL found new ownership under an Italian company, Bending Spoons, for $1.5 billion. What catches attention is not just that AOL is still operational, generating $633 million annually, but that it is poised to go public along with other bygone internet entities.
Bending Spoons, the new custodian of AOL, has been acquiring legacy tech companies, some with familiar names like Evernote, Vimeo, WeTransfer, Brightcove, and Eventbrite. This week, Bending Spoons plans to raise up to $1.62 billion through an initial public offering on the Nasdaq, potentially valuing the company at $19 billion.
The company’s approach starkly contrasts the frenzy surrounding ambitious, high-valued companies developing artificial intelligence. The AI boom has escalated success expectations in an industry already fixated on innovation, leading to several high-profile IPOs. Notably, Elon Musk’s SpaceX made headlines with a $1.77 trillion listing, and investors are keenly awaiting market entries from Anthropic and OpenAI.
Typically, companies absent from rapid growth narratives are overshadowed. Yet, Bending Spoons highlights that value can still be extracted from established internet brands. Their method often includes swiftly reducing personnel who managed internet services, increasing pricing, and deploying their team of youthful engineers from Milan to enhance product offerings and stimulate growth.
“Our concept is to blend a private equity firm with Google,” stated Luca Ferrari, Bending Spoons’ chief executive, in a 2024 interview. “It’s like they had a baby.”