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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.
> 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.
This always shocks me. I moved a company off of Salesforce in 45 days without a big issue. Day 1 was a bit slower but by day 2 folks were back at full speed. I've pulled off EMR migrations, ERP, accounting, etc. Moving is scary but doable.
Sometimes the execs will just pay rather than risk anything. At my last job I spent 7 months researching and building a migration plan for an app that was literally costing us customers/patients because it was so bad. Came back with a plan to move to a better system (of of 38 I researched), 6 month implementation, $800k/yr savings directly, another $400k indirectly from other tools we could cancel because the new tool would do all of that. The board ignored me and the rest of the C-suite, and went back to the vendor and signed a new agreement that INCREASED the yearly bill from $1.2m to $1.8m/yr. They completely cut me out of all the negotiations, I didn't even know it was happening, and I was the CIO. I quit, and they're now being sold at a firesale price.
Why was the board involved in that decision to begin with?
Curious what did you move them into from SF? SF is usually treated as this infallible perfect piece of software by non-tech folks, especially those looking to pad their resumes.
What is your ERM of choices? Opinion on EPIC?
Sometimes these deals are backroom friends/frat bros/sex etc and make no sense without knowing that crap.
The number of corporate IT departments got caught when VMWare licencing shifted from Dell EMC to Broadcom https://www.techradar.com/pro/broadcom-has-allegedly-hiked-v...
This still confuses me. It's clear they wanted to 10x licensing costs and /10 customers which assumably raises margins, but i still dont see it working out.
My international enterprise and all our business partners moved every broadcom product we have to a competitor. On top of that, they were very aggressive and combative with their sales+cease and desist threats.
They earned enemies for life. Some of us care about business relationships. Broadcom is dead to me and anyone that will listen to me.
IMO, they buy companies, lay off en masse and sell the now sunsetted products.
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.
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.
This guy dubbed it “get Komooted”, as they pulled the same trick for used-to-be-great cycling app Komoot: https://bikepacking.com/plog/when-we-get-komooted/
The app quality almost immediately went down the drain after the acquisition by Bending Spoons.
Yep. They fucked up Komoot so badly that I'm building my own cycling app
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 at that point 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.
They didn’t burn Evernote to the ground to my surprise, but I jumped ship the day they bought it.
It turned out that I have grown out of Evernote anyway, so no big loss.
I guess somebody out there has gotta make the croutons
Per Wikipedia, Bending Spoons owns: AOL, Brightcove, Eventbrite, Evernote, Harvest, Issuu, Komoot, Meetup, MileIQ, Remini, StreamYard, Tractive, Vimeo, and WeTransfer.
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.
> "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."
Gergely Orosz did an interview with them in 2024:
https://newsletter.pragmaticengineer.com/p/twisting-the-rule...
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 profit(edit). 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.
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.
Partiful feels like it has replaced Facebook Events, Meetup, and the other formerly-popular hubs for in-person event planning.
I think we should try to build local hobby-specific websites and then have aggregator sites for event discovery.
I made one for in person board game events in the Washington DC area at https://dmvboardgames.com/
Isn’t this just Luma?
Mark my words: they will keep growing until they collapse, and once that happens, they will use their reach and contacts with the Italian government to ask to be bailed out out of debt. It’s not a matter of “if”, but “when”.
It’s a well known strategy that has been applied by several Italian companies, FIAT (now Stellantis) first and foremost.
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.
While I'm not a huge fan of the Bending Spoons model, Vimeo sure got improved quickly.
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.
(1) https://www.dcrainmaker.com/2025/03/komoot-acquired-history-... (2) https://bikepacking.com/plog/when-we-get-komooted/
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.
Some history from only the past year in discussions:
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
It's still a big mystery to me how they were able to pull billion-dollar acquisitions while being one or two orders of magnitude lower in revenue.
>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.
Leverage. They’re essentially an 80s style junk bond LBO house.
> you cannot go to a bank and ask them to help you acquire something 100x worth your cap.
you literally can, it's the entire point of eg management buyouts
I looked at the Bending Spoons employee handbook, and they openly admit that employee performance is evaluated on "making an impact". To me, this means adding pointless features for the sake of getting better ratings.
Since Bending Spoons purchased Meetup, I have noticed the UI becoming more cluttered and hard to use. Also, I consistently get ads asking me to buy an organizer subscription to host events, even when on the page for a group I'm an organizer for.
After seeing this emphasis on "impact" cause Meetup's UI to degrade, I'm skeptical about the company's long term future.
>
I looked at the Bending Spoons employee handbook, and they openly admit that employee performance is evaluated on "making an impact". To me, this means adding pointless features for the sake of getting better ratings.
I worked at a company that was all about impact. Take the site down, that's a lot of impact ... If they wanted something else, they should have been more specific.
They also own Komoot and I am anxiously awaiting the enshittification.
As of now my use cases still work and it certainly helped that I bought the lifetime all-world map package.
It has already started, many features which you could previously access without an account are now locked behind a login screen.
From my view, komoot got a lot better since it was bought by BS.
I don't know how they did this while laying off a lot of devs, but compared to the years before, a ton of useful things got shipped.
Disclaimer: I have the yearly subscription. Maybe the new features are only available for customers who are subscribing, not the one-time purchases.
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?
why is it courageous?
It seems the perfect time to do it while the market is still bubbly.
Another IPO that I will be avoiding.
But how will they make it about AI...?
Hmm, assuming that the AI bubble might pop a little bit after the upcoming IPOs, maybe it's better not to call yourself an AI company then?
20VC had an interview with them:
https://www.thetwentyminutevc.com/luca-ferrari
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.
So first they fire all the staff and then they "care and improve the products"? Who? Who does that? They fired the staff, so who improves the product?