Berkshire Hathaway Invests $330 Million in Bending Spoons Amid Share Surge

Berkshire Hathaway has announced a significant investment of $330 million in Milan-based software operator Bending Spoons. The investment involves the purchase of 10 million newly issued ordinary shares at a price of $33 each, as reported by 24/7 Wall St.

This latest funding builds on a previous investment of $600 million made during Bending Spoons' initial public offering in July, bringing Berkshire's total commitment to approximately $930 million. Following this investment, Berkshire Hathaway now holds about a 4% stake in the company.

Luca Ferrari, co-founder and CEO of Bending Spoons, expressed admiration for Berkshire Hathaway's reputation as a leading capital allocator, stating that the investment reflects confidence in their team and platform. Bending Spoons specializes in acquiring and managing established software and internet businesses, including well-known names like Airtable and Vimeo.

On the day of the announcement, Bending Spoons' shares closed at $53.46, a substantial increase of 41.2% from the previous session's price of $37.86. This surge means that buyers at the close paid a premium compared to Berkshire's fixed placement price.

Francesco Patarnello, Head of Business Acquisitions and co-founder, noted that Bending Spoons is actively evaluating merger and acquisition opportunities, indicating a strong pipeline for future growth. The private placement is expected to close in the fourth quarter, subject to standard conditions.

Following the announcement, Berkshire’s Class B shares saw a slight increase of about 1%.