Bending Spoons: Turning Internet Castoffs into Billions

Bending Spoons, which recently acquired America Online (AOL) for $1.5 billion, is preparing for a substantial initial public offering (IPO). The company aims to raise as much as $1.62 billion on the Nasdaq, potentially valuing it at $19 billion. This strategy contrasts with the current focus on artificial intelligence, instead targeting older internet brands.

Founded in 2013, Bending Spoons has a history of acquiring over 50 companies, including well-known names like Evernote and Vimeo. Their playbook typically involves workforce reductions, price increases, and product improvements executed by young engineers. CEO Luca Ferrari describes the company as a hybrid between a private equity firm and Google.

This approach has drawn criticism from some former employees and customers who feel the acquired companies were dismantled. However, Bending Spoons argues these changes are necessary for improvement. With over 1,000 potential acquisitions on its list, the company sees significant opportunity in traditional software companies facing disruption from AI.

The company's origin traces back to a failed app, Evertale, with its name inspired by "The Matrix." Bending Spoons has successfully acquired and revamped businesses like Evernote and Issuu, demonstrating a capacity to increase revenue, though some companies have seen declines later. The recent acquisition of AOL, which still attracts 30 million monthly users, marks its largest deal yet.

Competitors like Constellation Software and MediaLab also focus on acquiring older tech assets. Despite past controversies, Bending Spoons' strategy has gained traction, attracting talent to Milan and proving that established internet brands can still hold value.