Berkshire Hathaway has invested an additional $330 million in Bending Spoons, increasing its ownership in the technology company to approximately 4% and triggering a sharp rally in the company’s shares.
Bending Spoons will issue Berkshire 10 million ordinary shares at $33 each through a private placement.
The investment follows approximately $600 million that Berkshire committed during Bending Spoons’ initial public offering in July.
With the additional investment, Berkshire becomes the company’s sixth-largest shareholder.
Investors reacted strongly to the announcement.
Bending Spoons shares surged approximately 34% following disclosure of Berkshire’s increased investment.
The reaction reflects both Berkshire’s reputation as a long-term investor and the additional financial flexibility the transaction provides Bending Spoons.
The Italian technology company has built its strategy around acquiring digital businesses and attempting to improve their operations, profitability and long-term value.
Its portfolio includes businesses such as Airtable, Tractive and WeTransfer.
The additional Berkshire capital could strengthen Bending Spoons’ ability to pursue further acquisitions.
Management has indicated that the company continues to maintain a significant pipeline of potential merger and acquisition opportunities.
That makes the transaction more than simply an increase in Berkshire’s existing position.
It provides Bending Spoons with additional capital at a time when financing conditions remain selective for technology companies pursuing large acquisitions.
The investment is also notable within Berkshire itself.
Under CEO Greg Abel, Berkshire continues to maintain significant exposure to technology through major investments including Apple and Alphabet.
Bending Spoons represents a different technology model — one centered on acquiring and operating a portfolio of established digital businesses.
For investors, the next question is how aggressively Bending Spoons deploys its expanded financial resources.
Future acquisitions, the operating performance of its existing portfolio and any further Berkshire investment will help determine whether Wednesday’s sharp market reaction translates into longer-term value creation.
