Investors urged to buy low and hold
Bending Spoons, an Italian tech holding company, has spent the last decade purchasing struggling digital brands at deep discounts, revamping them, and retaining them under one corporate structure. This approach has built a $23 billion enterprise, prompting debate about whether the model represents the future of tech turnarounds or a risky bet on indefinite ownership.
The buy-low, hold-forever playbook
Established in 2013, Bending Spoons functions like a private equity firm without the typical exit strategy. Rather than selling acquisitions for quick profits, it targets struggling tech companies—often at 80% to 90% below their peak valuations—then restructures them to produce reliable cash flow. That revenue funds the next purchase, creating a self-sustaining loop.
The company’s most recent acquisition, announced this month, is Airtable, a workplace software provider bought for $1.29 billion. The price represents a steep discount from Airtable’s 2021 valuation of nearly $11 billion. This mirrors the strategy Bending Spoons has applied to roughly 50 deals since its founding, including purchases of AOL, Vimeo, Eventbrite, and WeTransfer.
Revenue has grown rapidly alongside the acquisitions. In 2023, Bending Spoons reported $387 million in revenue. That figure rose to $1.3 billion last year. Second-quarter earnings this year showed $704 million in revenue and $177 million in net income, reflecting year-over-year increases of 126% and 171%. The company went public on the Nasdaq in July, raising $1.68 billion at an $18.4 billion valuation, with shares climbing 40% on its first trading day.
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The approach carries significant risks. Bending Spoons holds substantial debt—more than four times its annualized EBITDA, totaling between $4.3 billion and $4.4 billion. That leverage exceeds peers like Constellation Software, which follows a similar permanent-capital model but with less borrowing. Critics argue that if integration efforts fail, the company lacks an exit strategy, as it has no plans to divest underperforming assets.
Rebuilding from the ground up
Luca Ferrari, the CEO and co-founder, describes the process as a “deep transformation.” Acquired companies undergo more than job cuts; they are rebuilt from their technology foundations. “We integrate these companies very deeply onto our platform,” Ferrari said. “The technology, the product, the monetization, and large portions of the team. If we don’t believe we can make a significant impact, we won’t make an offer.”
The company’s name, inspired by The Matrix, reflects its founders’ belief that mindset can reshape outcomes. Its prospectus for the Nasdaq listing mentions 1,000 potential targets.
Bending Spoons presents itself to investors as a permanent-capital operator disguised as a tech company. Chelsea Michelle, who runs a business advisory firm, described the refusal to sell as the model’s defining feature. Traditional private equity firms focus on exit multiples, but Bending Spoons prioritizes cash generation. “That difference is structural, not just a matter of preference,” she said.
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The real challenge lies in integration. Most acquisitions fail to meet expectations, and a serial acquirer that retains everything indefinitely has little room for error. If Bending Spoons falters, unwinding its holdings won’t be simple.
For now, the company is wagering its approach will prove durable. Its prospectus lists 1,000 potential targets, indicating the acquisition spree is far from complete. Whether these deals will yield long-term success—or serve as a warning—may depend less on the strategy itself and more on its execution.
As the company expands, its ability to manage hidden risks in its growing portfolio will become increasingly important.
