Bending Spoons wants to revive software castoffs. Berkshire investing

Key Points:

• Bending Spoons, an Italian holding company, has rapidly transformed into a key acquirer of struggling software startups amid the AI boom, receiving a major investment boost from Berkshire Hathaway totaling over $900 million.
• The company has been buying SaaS firms like Airtable and Miro at steep discounts compared to their peak valuations, while implementing significant layoffs in acquired companies such as Evernote and Vimeo.
• Unlike traditional private equity firms, Bending Spoons aims to generate profits through active operational involvement and product changes rather than seeking quick exits, following a Warren Buffett-inspired long-term investment model.
• The firm’s strategy has led to revenue doubling to over $700 million and a 171% increase in net income, driven mainly by acquisitions, but its ability to sustain growth amid AI-driven industry shifts remains unproven.
• Customers of acquired companies have faced price increases, reflecting Bending Spoons’ approach to unlocking value, while the company plans to continue using profits for further acquisitions to fuel growth.