TaskUs’ Undervaluation in the Blackstone Take-Private Deal: A Case for Shareholder Value Destruction

The proposed $16.50-per-share buyout of TaskUs by Blackstone and its co-founders has sparked fierce debate, with critics arguing the offer fundamentally misprices the company’s growth potential and operational strength. While the deal offers a 26% premium to the 30-day volume-weighted average price, it undervalues TaskUs by at least 50% when compared to industry benchmarks and the company’s recent financial performance. This mispricing risks eroding shareholder value, particularly for the 79.44% of retail investors who lack the clout to negotiate better terms [3].

A Premium That Fails to Reflect Growth

TaskUs’ Q2 2025 results underscore its robust trajectory. Revenue surged 23.6% year-over-year to $294.1 million, driven by double-digit growth across all service lines, including a 65.5% increase in AI Services and a near-30% rise in Trust + Safety [1]. Adjusted EBITDA reached $65 million, with margins of 22.1%, outperforming typical BPO industry margins of 20-30% [5]. Yet the buyout price implies a 6.8x multiple on its $65 million EBITDA, far below the 12x LTM EBITDA multiple Think Investments argues is justified by comparable transactions like Capgemini’s acquisition of WNS [1].

Strategic Partnerships and AI Expansion Ignored

TaskUs’ partnerships with Decagon and Regal to develop Agentic AI-Powered Customer Experience solutions highlight its competitive edge [3]. These initiatives align with Everest Group’s recognition of TaskUs as a leader in Trust and Safety Services, a sector projected to grow at 34.3% CAGR through 2033 [5]. Despite this, the Blackstone deal overlooks the long-term value of AI integration, which has already driven 31% YoY growth in its AI Services segment [5].

Free Cash Flow Concerns vs. Growth Potential

Critics of the deal point to TaskUs’ weak free cash flow—$38,000 in Q2 2025—as a red flag [1]. However, this metric reflects one-time capital expenditures and non-recurring costs, not a structural flaw. The company’s global workforce of 60,400 employees across 13 countries and its focus on high-margin AI services suggest a path to stronger cash flow generation in the future. Yet the buyout price assumes a static business, ignoring the potential for AI-driven margin expansion.

Institutional Shareholder Services’ Stance and Retail Investor Vulnerability

ISS’s recommendation to reject the deal is grounded in a valuation gap that favors insiders. The fairness opinion relied on a median EBITDA multiple of 6.8x, excluding key precedents like the WNS acquisition [1]. Meanwhile, retail investors—79.44% of TaskUs’ ownership—lack the leverage to demand revisions [3]. Think Investments’ $25-per-share counteroffer, based on 12x LTM EBITDA, reflects a more realistic valuation for a company with TaskUs’ growth profile [1].

Conclusion: A Flawed Deal for Minority Shareholders

The Blackstone buyout of TaskUs represents a classic case of mispriced growth. By undervaluing the company’s AI-driven expansion, strategic partnerships, and industry-leading EBITDA margins, the deal prioritizes short-term certainty for insiders over long-term value creation for shareholders. As the market awaits the outcome of the shareholder vote, the broader lesson is clear: in fast-evolving sectors like AI BPO, static multiples fail to capture dynamic potential.

Source:
[1] TaskUs Announces Fiscal Second Quarter 2025 Results [https://ir.taskus.com/news-releases/news-release-details/taskus-announces-fiscal-second-quarter-2025-results]
[2] Digital Customer Experience–Driven BPO Transactions and Valuations [https://jahaniandassociates.com/digital-customer-experience-driven-bpo-transactions-and-valuations/]
[3] Exploring TaskUs, Inc. (TASK): Who's Buying and Why? [https://dcfmodeling.com/blogs/investors/task-investor-profile?srsltid=AfmBOopzt1e3LOa6DJ1yflacz-rg8eKnwf5qlN6OTc1fyc2DiCq9ZFml]
[4] AI Valuation Multiples 2025 [https://aventis-advisors.com/ai-valuation-multiples/]
[5] AI In BPO Market to hit USD 49.6 Billion By 2033 [https://www.linkedin.com/pulse/ai-bpo-market-hit-usd-496-billion-2033-markets-us-az8fc]