TLDR
- Bending Spoons (BSP) stock rose about 35% to $51.17 on Wednesday after Berkshire Hathaway invested another $330 million.
- The private placement covers 10 million ordinary shares at $33 each and lifts Berkshireâs stake to 4%.
- Berkshire first put $600 million into the company at its July 1 IPO.
- Bending Spoons plans to use the money for general corporate purposes and new acquisitions.
- Berkshire Hathawayâs B shares were little changed, trading near $520.
Bending Spoons (BSP) stock climbed about 35% to $51.17 on Wednesday. The jump came after the company said Berkshire Hathaway had put another $330 million into the business. It was on pace for the best daily percentage gain since the stock began trading on July 1.
Some data feeds showed the gain closer to 38% during the session. Berkshire Hathawayâs B stock (BRK.B) barely moved, trading near $520.
The new money comes through a private placement. Bending Spoons will issue 10 million ordinary shares at $33 each. That raises about $330 million before offering expenses.
The $33 price sits well below where the stock traded after the news. Berkshire is buying in at a steep discount to the new market price.
The deal lifts Berkshireâs ownership stake in the Milan-based company to 4%. Berkshire had already invested $600 million at the July IPO. This is its second check in about three months.
The placement is exempt from Securities Act registration. It is also subject to customary closing conditions. More details are due in an upcoming Form 6-K filing.
What the Money Is For
Bending Spoons told regulators it plans to use the proceeds for âgeneral corporate purposes and to invest in new acquisitions.â That fits the way the company has grown so far. It buys digital platforms and reworks how they run.
The list of deals is long. Earlier this year it bought AOL for $1.5 billion. It has also picked up Vimeo, Brightcove, Evernote and Eventbrite.
Its portfolio also includes Airtable, WeTransfer and Tractive. Few software buyers have collected so many well-known names in such a short time.
Chief Executive Officer Luca Ferrari said Berkshireâs backing shows a shared excitement about the companyâs long-term path. He did not give details on the next target. Berkshire has not commented beyond the filing.
Deal Pipeline Still Active
Francesco Patarnello, the companyâs Head of Business Acquisitions, said the deal pipeline remains active. He added that the new cash will help the firm do more deals. So the buying spree looks set to continue.
Berkshireâs move stands out because the firm rarely adds to a recent investment so quickly. Two purchases in one quarter is a clear sign of interest. Wall Street clearly noticed.
Berkshire Hathawayâs B stock slipped about 0.1% to $519.94 early in the session. Later data showed it up slightly, near $520.86. Either way, the move was tiny next to the jump in Bending Spoons.
As of Wednesday morning, Bending Spoons traded at $51.17, up about 35% on the day. Berkshireâs new shares were priced at $33 each. The company says the Form 6-K with further deal details is still to come.
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