Italian technology company Bending Spoons has built a tech empire valued at approximately $23 billion by pursuing an unconventional strategy: acquiring struggling digital brands, restructuring them aggressively and holding them for long-term growth rather than selling them for quick profits.

Founded in 2013 by a group of entrepreneurs led by Luca Ferrari, Bending Spoons began with just $40,000 in remaining capital after the failure of the founders’ first start-up. More than a decade later, the Milan-based company owns an expanding portfolio of well-known digital platforms, including Evernote, Vimeo, Eventbrite and AOL.

Rather than creating new consumer apps from scratch, Bending Spoons focuses on buying established technology businesses whose growth has stalled. After each acquisition, the company centralizes engineering, product development and business operations, aiming to improve efficiency, reduce costs and return the platforms to profitability.

The firm’s acquisition strategy has accelerated rapidly in recent years, with roughly three-quarters of its deals completed within the past three years. Management says it has identified more than 1,000 additional technology businesses that could become future acquisition targets.

Bending Spoons’ operating model differs from that of traditional private equity firms. Instead of purchasing businesses with the intention of reselling them, the company typically retains ownership and reinvests profits to fund further expansion. This long-term approach has helped transform it into one of Europe’s fastest-growing technology groups.

The company’s rapid growth has not been without controversy. Several acquisitions have been followed by significant workforce reductions as operations were streamlined. Critics argue that these cost-cutting measures can come at the expense of employees and product development, while supporters contend they are necessary to revive underperforming businesses and ensure long-term sustainability.

Investor confidence in the strategy was reinforced by the company’s successful Nasdaq debut, which raised approximately $1.68 billion and briefly lifted its market valuation to around $23–26 billion after shares surged on their first day of trading.

As competition intensifies across the technology sector, Bending Spoons plans to continue expanding through acquisitions rather than competing directly with AI start-ups. Management believes many established digital brands still possess strong user bases and valuable products that can generate significant long-term returns through disciplined operational improvements.

With its combination of software expertise, centralized operations and aggressive dealmaking, Bending Spoons has emerged as one of Europe’s most closely watched technology companies, demonstrating that revitalizing struggling digital businesses can be just as valuable as building new ones.

Reference: Financial Times – “How Bending Spoons built a $23bn tech empire from struggling brands”