Bending Spoons Acquires Distressed SaaS Assets with Berkshire Hathaway Backing
Milan-based firm targets undervalued software companies as AI disruption reshapes the enterprise landscape.
1Strategic Market Entry
Bending Spoons, a Milan-based holding company, debuted on the Nasdaq in July 2025. Initially known for managing older internet brands like AOL and Vimeo, the firm has pivoted toward acquiring distressed software startups. This strategy gained significant momentum following a $900 million investment from Berkshire Hathaway, signaling strong institutional confidence.
2The SaaSpocalypse Phenomenon
The rise of large language models and AI agents has displaced many traditional software-as-a-service providers. Companies like Intuit, HubSpot, and Adobe have seen shares drop over 30% this year. This market shift, dubbed the SaaSpocalypse, has left many former venture darlings struggling to secure capital or find viable exit paths.
3Aggressive Acquisition Strategy
Bending Spoons recently acquired Airtable for $1.3 billion, a valuation nearly 90% below its 2021 peak. The firm also agreed to purchase Miro, previously valued at $17.5 billion, for $1.36 billion. These deals reflect a pattern of purchasing legacy software assets at deep discounts as the broader market loses interest.
4Operational Overhaul Tactics
Unlike traditional private equity firms that focus on financial engineering, Bending Spoons employs a hands-on operational model. Following acquisitions, the company frequently implements significant job cuts and restructures internal teams. This approach aims to maximize profitability from existing products rather than preparing them for future exits or public market offerings.
5Pricing Power Dynamics
The firm actively leverages high switching costs to increase revenue through aggressive price hikes. For instance, Evernote subscription fees were raised significantly following its 2022 acquisition. While such moves risk customer churn, the company maintains that the value provided justifies the cost, effectively squeezing margins to drive immediate cash flow growth.
6Financial Performance Metrics
In its first public earnings report this August, Bending Spoons reported revenue exceeding $700 million, more than double the previous year. Net income rose 171% to $177 million, though this growth was primarily driven by acquisitions rather than organic expansion. Future quarters will test if this model sustains long-term profitability.
7Comparison to Private Equity
Industry observers note that Bending Spoons differs from firms like Thoma Bravo or Vista Equity Partners. While those firms face challenges from overpaying for assets during the tech boom, Bending Spoons claims it has not been outbid for targets in years, focusing on undervalued assets that others currently view as legacy.
8Future Market Viability
The sustainability of the Bending Spoons model remains unproven as AI continues to squeeze software margins. Success depends on whether acquired products remain desirable enough for customers to pay premium prices. As the firm integrates enterprise-focused assets, its ability to revive these platforms will define its long-term impact on the industry.