Proxy Adviser ISS Recommends Rejecting Blackstone's $16.50 Offer for TaskUs.

Proxy advisor Institutional Shareholder Services recommends rejecting Blackstone's $16.50 per share takeover offer for TaskUs, citing no compelling reason to accept the terms. The offer is seen as a low premium compared to TaskUs' growth potential.

Title: Proxy Advisor ISS Recommends Rejecting Blackstone's $16.50 Per Share Takeover Offer for TaskUs

Proxy advisor Institutional Shareholder Services (ISS) has advised TaskUs shareholders to reject Blackstone's $16.50 per share takeover offer, citing no compelling reason to accept the terms. The offer, proposed by Blackstone and TaskUs' co-founders, is seen as undervaluing the company's growth potential and operational strength.

TaskUs, a digital services provider handling content moderation, has been performing exceptionally well. Its Q2 2025 results show a 23.6% revenue growth to $294.1 million and 22.1% EBITDA margins, outperforming industry benchmarks. The company's AI Services segment has grown by 65.5% year-over-year (YoY) in the first half of 2025, highlighting its strong momentum and future growth potential.

However, the proposed takeover price of $16.50 per share is significantly lower than the valuation suggested by Think Investments, a major shareholder. Think Investments argues that a fair valuation for TaskUs is $25.00 per share, based on a 12x LTM EBITDA multiple, which is more than 50% above the proposed buyout price [1].

ISS's recommendation is based on the lack of a compelling reason to accept the terms of the deal. The proxy advisor points out that the proposed price does not reflect the company's recent financial performance and growth prospects. The fairness opinion relied on a median EBITDA multiple of 6.8x, which excludes key precedents like the WNS acquisition. This valuation method fails to capture the true value of TaskUs, particularly its AI-driven expansion and strategic partnerships.

Think Investments and other large shareholders, including Murchinson, have publicly stated their intention to vote against the deal. They argue that the transaction would prevent minority shareholders from realizing TaskUs' significant value creation potential, particularly in AI services.

The shareholder vote is scheduled for September 10. If the offer is rejected, it could force Blackstone to revise its offer or withdraw the proposal altogether. TaskUs closed at $17.40 on Thursday, well above the $16.50 per share deal, indicating that investors may believe the takeover offer may have to be increased.

In conclusion, the proposed takeover offer by Blackstone is seen as undervaluing TaskUs' growth potential and operational strength. The proxy advisor ISS's recommendation to reject the deal is based on the lack of a compelling reason to accept the terms. Shareholders are advised to consider the company's recent performance and growth prospects before making their voting decision.

References:
[1] https://www.marketscreener.com/news/significant-shareholder-think-investments-issues-presentation-detailing-opposition-to-taskus-take-pr-ce7c50d9dc8df127
[2] https://www.businesswire.com/news/home/20250826427300/en/Significant-Shareholder-Think-Investments-Issues-Presentation-Detailing-Opposition-to-TaskUs-Take-Private-Transaction