I'm old enough to have been acquired by Computer Associates at a company that acquired my company. CA's business model was to buy companies and then fold their products into an omnibus license, all of their customers, including the ones they just acquired, becoming involuntary licensees whatever the cat dragged in this quarter.
It turns out a lot of corporate IT has no idea how to switch vendors in case a product they use gets acquired by a company with this business model.
They also have a very intense workplace culture, I had a manager who was part of Evernote while their site was being laid off by Bending Spoons, and he heard some wild stories, they pay above average for a European tech company (but with geo-fenced brackets), crunch a ton and then crash out at a big new year's party were they fly all their teams to some resort, among other things.
Warren Buffett used to do the same for decades, in fact this is how he came to control Berkshire Hathaway which he calls his worst investment, as it wasn't rational and merely driven by ego.
He wanted to take a controlling share of the company and then sell it for pieces so he started to buy increasing stakes in it.
When Berkshire management understood Buffett's plan they decided to stop him to not let him cannibalize and kill the company, and they offered to buy back his shares for 11$ a share which he accepted as it would've been a 2x return on his investment in a very short time span.
But then they made the critical mistake of low balling him by 1$ per share when it came to sign the documents, and he got so much emotional that he went and bought the entire company to prove a point and fire the management.
It was not a good idea and he would not make money on that acquisition, so after selling off the assets he decided to make it the holding for its other investments.
It's the circle of life - all businesses reach a point where they don't have significant growth potential or became a "keep the lights on operation" and their investors and founders wish to exit and cash out in order to invest in greener pastures.
That's where businesses like Bending Spoons, Red Ventures, and IAC come in for digital media.
I'm often thinking about building a better Meetup, it's so expensive for organizers these days. But then I acknowledge the network effects and I give up. And they own Eventbrite too! Savvy people.
I see a lot of people using https://luma.com/. I'm sure it's not as big as Meetup but it does have a decent community of users, and you can set up pretty much anything with their free plan.
It's about the user bases - Luma and Partiful are almost entirely professionals in careers like Tech, Finance, or Entertainment (especially LA), and the events almost always vet before accepting people.
This helps ensure a better noise to signal ratio that Meetup simply couldn't provide.
Interesting point, but I personally didn't find Meetup had a noise issue. You could filter for the right stuff, pretty easily. Also I don't see how Luma/Partiful will avoid this problem eventually.
Hmm, didn't know of Partiful. Quick look at landing page, seems more geared to parties and more social media-y? Meetup's event listing was good as it was; well, before they started charging for you to even see who's attending.
You missed filmic. Wow. So these people are the reason why Filmic went overnight from one of my favorite iOS apps to something for the trash heap.
my knee jerk reaction is to throw shade at the ppl operating the company but, upon second thought, there's an obvious pattern of them relieving the company from people who knew less how to run (and sustain) it. I haven't used evernote in almost a decade but it actually seems.. fine? I stopped using it when the company started selling merch as a latch ditch effort to make money.
They're basically the retirement home for once-good apps and services who still serve a dwindling core audience but are not longer growing or even a real contender in their field.
At least Evernote was saved by Bending Spoons. At one point, even Evernote was getting roughly a third of its monthly revenue from merchandise, which is pretty wild for a paperless note-taking app and a decent sign that the core business was already in bad shape. For the rest, though, they seem very good at squeezing hard whatever is left.
> "Founded in 2013, Bending Spoons reported a net income of $27.5 million on revenue of $601 million for the three months ended March 31, compared to a net loss of $112.2 million on revenue of $259 million a year earlier. A large chunk of its revenue comes from recurring subscriptions, providing a more predictable stream of income."
Clever, shitty numbers and they decide to IPO at the peak of the "actually SaaS is worthless" hype. I wish them the worst, considering their business model.
So roughly $100m/year revenue. They are looking for a 20Bn valuation but interest rates are at 5%? How does any of this make any sense? That or we are in a real bubble.
You're mixing up the numbers. Their annual run rate is $2.4 billion. Revenue grew 140% YoY. That's an 8x sales multiple on good growth. The valuation is not egregious.
Their strategy always was "buy company" and "instantly lay off about everyone" to save costs and rapidly increase subscription pricing (1).
So far they've been relatively soft (for their doing) on Komoot, which I too am most anxious off.
Bikepacking.com has a good read about Komoot; it was probably unsustainable in the long run before bending spoons took over anyways (2), yet I much rather had they stayed a sort of indie company driven by their passion. I will cancel my long standing Komoot subscription the day enshittification news breaks.
You can imagine all of these moderately successful SAAS companies that see peak subscribers starting to fall off on top of legacy tech stacks and no will to make drastic steps to get back to growth and understand why they sell. I've never seen BS as specifically ruining companies (although they've certainly been known to jack up prices for the remaining subscribers) but it's not a good sign when they do buy something you use.
Interesting, Vimeo sat under IAC for almost 20 years claiming it would go public, when it finally did it was eventually sold off to Bending Spoons not even 5 years in.
What exactly? From what I’ve heard, most of what was released in the months after the acquisition were features that were already in development/behind feature flags.
IPOing just before an evident .com tech bubble is about to explode is courageous. Good luck to everyone.
That said, their business model seems fairly solid, and despite the naysayers, they improve things a bit on most of their acquisitions. So there might be some real value in what they do. Yet, the expected market valuation is way off. But worry not: market will fix that.
> despite the naysayers, they improve things a bit on most of their acquisitions
There seem to be quite a few commenters stating the exact opposite, with concrete examples in hand (especially for Komoot). Do you have experience with any of the services they've bought, and can say how they've been improved?
I came in thinking they would be like PE and just put products on life support sucking all the recurring they can. But it seems they care and improve the products. I think that has merrit.
It turns out a lot of corporate IT has no idea how to switch vendors in case a product they use gets acquired by a company with this business model.
Reminiscent of "Chainsaw" Al Dunlap, but he gutted and then flipped whole companies.
I think of them as the bakery outlet store that sells only stale goods.
Doesn't sound any worse than the average restaurant.
The app quality almost immediately went down the drain after the acquisition by Bending Spoons.
He wanted to take a controlling share of the company and then sell it for pieces so he started to buy increasing stakes in it.
When Berkshire management understood Buffett's plan they decided to stop him to not let him cannibalize and kill the company, and they offered to buy back his shares for 11$ a share which he accepted as it would've been a 2x return on his investment in a very short time span.
But then they made the critical mistake of low balling him by 1$ per share when it came to sign the documents, and he got so much emotional that he went and bought the entire company to prove a point and fire the management.
It was not a good idea and he would not make money on that acquisition, so after selling off the assets he decided to make it the holding for its other investments.
That's where businesses like Bending Spoons, Red Ventures, and IAC come in for digital media.
This helps ensure a better noise to signal ratio that Meetup simply couldn't provide.
https://en.wikipedia.org/wiki/Bending_Spoons
my knee jerk reaction is to throw shade at the ppl operating the company but, upon second thought, there's an obvious pattern of them relieving the company from people who knew less how to run (and sustain) it. I haven't used evernote in almost a decade but it actually seems.. fine? I stopped using it when the company started selling merch as a latch ditch effort to make money.
Gergely Orosz did an interview with them in 2024:
https://newsletter.pragmaticengineer.com/p/twisting-the-rule...
So far they've been relatively soft (for their doing) on Komoot, which I too am most anxious off.
Bikepacking.com has a good read about Komoot; it was probably unsustainable in the long run before bending spoons took over anyways (2), yet I much rather had they stayed a sort of indie company driven by their passion. I will cancel my long standing Komoot subscription the day enshittification news breaks.
(1) https://www.dcrainmaker.com/2025/03/komoot-acquired-history-... (2) https://bikepacking.com/plog/when-we-get-komooted/
Bending Spoons acquires Vimeo for $1.38B
https://news.ycombinator.com/item?id=45197302
AOL to be sold to Bending Spoons for $1.5B
https://news.ycombinator.com/item?id=45749161
Bending Spoons Acquires Eventbrite
https://news.ycombinator.com/item?id=46124673
Tell HN: Bending Spoons laid off almost everybody at Vimeo yesterday
https://news.ycombinator.com/item?id=46707699
>inb4 leverage
Yeah, I know leverage exists but still, you cannot go to a bank and ask them to help you acquire something 100x worth your cap.
As of now my use cases still work and it certainly helped that I bought the lifetime all-world map package.
That said, their business model seems fairly solid, and despite the naysayers, they improve things a bit on most of their acquisitions. So there might be some real value in what they do. Yet, the expected market valuation is way off. But worry not: market will fix that.
There seem to be quite a few commenters stating the exact opposite, with concrete examples in hand (especially for Komoot). Do you have experience with any of the services they've bought, and can say how they've been improved?
I came in thinking they would be like PE and just put products on life support sucking all the recurring they can. But it seems they care and improve the products. I think that has merrit.