Bending Spoons defies SaaS slump, surges 40% on first day of trading
Earlier this year, shares of traditional SaaS companies tumbled amid investor fears that software built with AI could eventually displace those businesses. Despite such concerns, Bending Spoons, a company that acquires and revitalizes stagnating but well-known tech firms, saw its shares surge in its market debut.
It closed at $40.50 on Wednesday, nearly 40% above its $29 IPO price. At that price, the 13-year-old Milan, Italy-based company has a market capitalization of $25.7 billion, more than double its last private valuation of $11 billion. The company raised $1.68 billion in its offering.
Bending Spoons has grown rapidly by acquiring aging, but once popular, brands like AOL, Eventbrite, Evernote, Meetup, and Vimeo, then turning them profitable, typically through aggressive cost-cutting, launching new features and raising prices. While the company’s approach is similar to private equity, there is one key difference: Bending Spoons has no plans to sell these businesses.
The company’s...
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