Oct 14 (Reuters) – Bending Spoons shares rallied 34% on Wednesday after Berkshire Hathaway invested another $330 million in the owner of Vimeo and AOL, a big endorsement from the high-profile investor whose moves traders closely follow.
The purchase builds on the $600 million Berkshire invested in Bending Spoons’ initial public offering in July. It lifts the Warren Buffett-founded conglomerate’s stake in the company to 4%, making it Italian company’s sixth-largest investor, according to LSEG data.
Berkshire Hathaway, whose businesses span insurance, energy, rail transportation, manufacturing and retail, has a history of investing across industries.
Under CEO Greg Abel, the conglomerate has increased its exposure to technology companies and AI, with Alphabet becoming its third-largest common stock holding. Its largest stock investments include Apple.
Bending Spoons will now issue 10 million ordinary shares to Berkshire at $33 per share. The company’s stock, meanwhile, jumped to $51.10.
Bending Spoons, which acquires and transforms struggling digital businesses, said the investment would strengthen its financial flexibility and support its acquisition strategy.
It continues to evaluate merger and acquisition opportunities and has a strong pipeline, said Francesco Patarnello, co-founder and head of business acquisitions.
Bending Spoons, which acquires and transforms digital businesses, has a portfolio that includes productivity software maker Airtable, pet-tracking company Tractive and file-sharing platform WeTransfer.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shreya Biswas)
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