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Posted by jmsflknr 1 day ago

AOL to be sold to Bending Spoons for $1.5B(www.axios.com)
271 points | 249 commentspage 2
jlarocco 18 hours ago|
I had never heard of Bending Spoons before.

Their Wikipedia article makes them sound like kind of a failure, but the entire second half of the page is talking about all of their acquisitions, more than one of which cost over $1 billion.

So what am I missing? How did this company get so much money?

xandrius 9 hours ago||
Dark-patterns all the way.

They have tiny internal teams split per product with the sole purpose of hiding the "not now" button as much as possible to increase trials and purchases.

Absolutely cancer of a company, run away if you see their name on anything.

Ekaros 9 hours ago|||
Maybe they just run companies like they should be run when VC money runs out. Which is somewhat hard for consumers that have gotten used to getting everything for free.

ZIRP era with free flowing money, probably did lot of bad in this respect. Running products cost actual money. And those surviving on advertising is more limited group.

jimnotgym 9 hours ago|||
I guess by offering consistent long term cashflows you can attract classic institutional investors, and banks. Europe is much better at that than it is at finding VC cash for a moonshot
Tarsul 9 hours ago||
I noticed that, too. If one only had the wikipedia article to go on, it would appear that they made way too much money with the covid app for Italy. Which is probably true, but probably not billions?! So, after reading another article[1] (which does not really give strong pointers but leads to) my conclusion would be that they simply somehow became a darling for investors and could finance all these big acquisitions.

[1]https://weeklysiliconvalley.com/bending-spoons-from-humble-b...

apparent 22 hours ago||
> That "incredibly loyal user base," as he called it, could be better served with greater investments in AOL's product and user experience, he noted.

Sure, but isn't the user base also incredibly aged, and literally dying off? They're also not very tech-savvy or likely to embrace new offerings.

If anything, it seems like the opportunity is to reclaim the old brand and try to make it a thing with Gen Alpha kids or something, via kitsch and some genuinely useful offerings (like more email storage than gmail, or something).

WillAdams 20 hours ago|
Some of us would have been willing to pay --- still annoyed all my members.aol.com pages were first defaced by ads (I would've paid extra to not have such) and then went away (I'd've been willing to pay a reasonable fee to keep them online).

This does however explain why a bunch of accounts I forgot to log into for a couple of years are gone.

dep_b 1 day ago||
If I would work at AOL I would start polishing up my resumé. They usually fire 80% after acquisition.
everfrustrated 1 day ago|
AOL was already owned by private equity so I'd imagine not much left to cut.
stabbles 1 day ago||
They bought Komoot, laid off 80% of the staff, but they still did a major redesign of the app and website afterwards. I expected outages, but so far it works like before.
NumberCruncher 22 hours ago||
> They bought Komoot, laid off 80% of the staff, but they still did a major redesign

This sounds like "doing a major redesign" would be something positive. I'm a paying customer since ages and use the app on daily basis. The new design adds nothing except confusion, at the same time they broke the app on my smartwatch. I'm pretty much thinking about switching apps because I don't see myself buying a new watch just because of this.

Some companies would be better off with less bored designers. This is exactly the same situation like a couple of years ago, when Spotify every week rearranged the GUI and every week I had to relearn how I can reach the same functionality. Back then I had to use the App Store to give feedback, but I see now I can do the same directly in the Komoot app. They're gonna have something to laugh about...

jimnotgym 9 hours ago||
>Some companies would be better off with less bored designers.

The comment you are replying to says they laid off 80% of them!

elAhmo 22 hours ago|||
It was mostly a cosmetic redesign, no functionality has been significantly changed. Websites don't just stop working after people are fired immediately, but they slowly die or become home for parasites. Twitter is a great example of this.
BozeWolf 1 day ago|||
Except that it now has ten times the number of reminders popping up to please subscribe for premium, even though I already have the world maps package, so they got some of my money already.
IncreasePosts 1 day ago||
This might just be an accounting trick.

A lot of mature products act as a lottery ticket printing machine for the rest of the company - spend the cash on some other concept and hope that new thing becomes a stand alone product on its own.

Now that komoot is owned by a parent company, instead of printing lottery tickets that other employees are scratching off, the cash is being sent up to the parent company, who may just have employees in another entity being funded by the money from komoot.

holden_nelson 15 hours ago||
Highly recommended the Bending Spoons episode of The Pragmatic Engineer podcast. They address the layoffs head-on and talk about some of their other unconventional stuff like no on-call. https://pca.st/episode/11464df6-e1cc-4b8f-a64d-a4de9a9ec170
flakiness 1 day ago||
This podcast episode has a couple of guests from that company. Recommend to whoever interested in this company: https://newsletter.pragmaticengineer.com/p/twisting-the-rule...
leoc 17 hours ago||
A good effort, but not at the level of “Twitter Acquires Magic Pony” or the unmatchable “Salesforce Acquires Slack”.
jmspring 17 hours ago|
In all honesty, Bending Spoons acquiring AOL will probably have better synergy across their portfolio than Salesforce buying Slack. Having worked at SF, even working in dev rel/infra ops, it was mostly "slack who?". That acquisition was more like the Skype/Lync - aka, not really integrated, but tried - as opposed to MS buying GitHub and mostly keeping it independent.
olalonde 21 hours ago||
It comes down to 50$ per monthly active user. I wonder how they plan to recoup that.
ajross 5 hours ago||
End of an era. (Well, OK, the era ended long ago, this is just the long-delayed tombstone I guess). Those of us coming out of the pre-boom internet always sneered, but those floppies they'd pack into every magazine were the gateway for the rest of the world.
justin66 5 hours ago|
Even though we all complained (perhaps not in so many words) about the eternal September and the damage done by opening things up to a larger number of people, the early AOLers were paradigms of intellectual curiosity and urbanity compared to what came later.
rootbear 1 day ago|
Verizon handed their email service over to AOL some years ago. I wonder if this will be the end for my unused @verizon.com account.
Macha 23 hours ago||
AOL mail and Verizon mail had both been migrated to the yahoo mail backend when I left the company. This one kind of feels like a weird acquisition to me as that’s the story for a lot of AOL properties these days - a differently branded front end to the same services as their Yahoo counterpart. It would surely be much more costly to run AOL outside Yahoo as now you need to spread the costs of maintaining all that across fewer users
mattmaroon 23 hours ago|||
Somehow, my very first email, Hotmail (which was the only option when I got it really) is the only one from the 90s that is still kicking.
dotcoma 23 hours ago|||
Yahoo! Mail is still working
mattmaroon 1 hour ago||
That’s true. I mean it does get hacked every week, but it does still function.
doodlebugging 19 hours ago|||
Earthlink remains great.
WarOnPrivacy 23 hours ago||
> Verizon handed their email service over to AOL some years ago. I wonder if this will be the end for my unused @verizon.com account.

Yeah. I have some biz clients with long-held verizon.net email accounts. Ever since 2017, verizon.net has felt like some barely-there netherverse, where the laws of physics keep upending themselves for funsies.

In this analogy, the laws of physics are pop/imap/smtp settings (and auth req), which aren't at all well-tethered. I suspect the engineers have the server settings printed on D&D dice; I think they reroll their mail servers whenever the game isn't exciting enough.

So what happens to those biz email accounts now - now that the entire AOL snowglobe has been picked up by a different corporate toddler? I have no way to tell.

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