Berkshire Hathaway has invested an additional $330 million in Italian technology company Bending Spoons, taking its stake to about 4%. The shares initially rose toward a new buy point after the investment, but fell more than 16% on Friday as market volatility picked up, underscoring the swings that can affect recently listed stocks even with backing from a major institutional investor.
Berkshire buys 10 million shares at $33 each
Berkshire acquired 10 million Bending Spoons shares in a private placement at $33 per share, for a total investment of about $330 million. The transaction raised Berkshire's ownership to approximately 4%.
This was Berkshire's second investment in the company. It invested about $600 million when Bending Spoons went public in July. The latest purchase expands Berkshire's position and has drawn further institutional attention to the newly listed technology company.
A strategy of acquiring established digital businesses
Headquartered in Italy, Bending Spoons focuses on acquiring well-known digital businesses and subscription software companies whose growth has stalled. It then undertakes substantial restructuring to improve profitability, with plans to hold the assets for the long term.
Digital products associated with the company include Evernote, Airtable, WeTransfer, Vimeo and AOL. The brands span note-taking, collaboration software, file transfer, video and online content. Bending Spoons aims to improve cash flow and profitability by integrating operations and changing products and subscription models.
Shares slide more than 16% on Friday
Bending Spoons shares rose earlier in the week after news of Berkshire's additional investment and came close to a new buy point, putting the stock on investors' radar among recent IPOs.
The shares reversed course on Friday, dropping more than 16% as market volatility intensified. The decline shows that institutional participation does not insulate a recently listed stock from short-term swings. Investors are also watching broader market conditions, trading liquidity and whether the company's acquisitions and restructuring can deliver sustained improvements in profitability.
Berkshire's two investments provide Bending Spoons with clear institutional backing, but the disclosed information centers on the stake and transaction size and does not establish how the company's earnings or share price will perform. Friday's decline has renewed attention on the valuation and business model of the recently listed company.