Key facts
- Berkshire Hathaway's total investment in Bending Spoons is $930 million.
- Berkshire Hathaway now holds a 4% stake in Bending Spoons.
- Bending Spoons' revenue surged 126% year-on-year to $704 million in Q2.
- Bending Spoons' adjusted operating income jumped 150% to $381 million in Q2.
- Berkshire Hathaway is paying over 100 times Bending Spoons' earnings per share from last year.
Berkshire Hathaway has invested $930 million in the Italian tech conglomerate Bending Spoons, comprising a new $330 million investment and a prior $600 million injection made when the company went public in July. This gives Berkshire a 4% stake in the company. The new investment was made at $33 per share, a 13% discount to Bending Spoons' closing price of $38 on Tuesday.
Bending Spoons acquires digital businesses, transforms them to increase profits, and reinvests earnings in further acquisitions. Its strategy involves deep transformations, including reorganizing teams, overhauling technology, and enhancing marketing, often utilizing AI. The company has previously acquired businesses like AOL, Evernote, and Vimeo.
The investment is notable as Berkshire Hathaway, historically cautious about tech investments due to valuation and complexity concerns, is backing a tech-focused firm. Bending Spoons' revenue surged 126% year-on-year to $704 million in the second quarter, with adjusted operating income jumping 150% to $381 million. The deal could signal an evolution in Berkshire's investment style following Warren Buffett's departure as CEO.