ISS recommends TaskUs investors reject proposed deal to take company private (updated)

Taskus

28/08/2025 23:20

Refiles to correct spelling of Murchinson in paragraph 4

By Svea Herbst-Bayliss

NEW YORK, Aug 28 (Reuters) - Institutional Shareholder Services on Thursday urged TaskUs TASK.O investors to reject a plan proposed by investment firm Blackstone BX.N and TaskUs' co-founders to take the outsourcing company that handles content moderation private.

"There does not appear to be a compelling reason to accept the terms," the influential proxy advisory firm wrote in its recommendation that was seen by Reuters. Shareholders are scheduled to vote on September 10.

ISS argues the offer made by Blackstone and Bryce Maddock and Jaspar Weir in May to pay $16.50 a share to take the company private "may have represented a premium at announcement, but it appears that the unaffected price is not the most appropriate reference point for value at this stage." The stock closed at $17.40 on Thursday.

ISS noted that two major shareholders, Murchinson and Think Investments, have already expressed public opposition to the deal, arguing the offer is below fair value.

TaskUs needs the majority of its minority shareholders to vote in favor of the deal for it to be approved.

The New Braunfels, Texas-headquartered company offers content moderation, customer experience, artificial intelligence for companies including DoorDash DASH.O, Meta META.O and Uber UBER.N and has a market value of roughly $1.6 billion. It was not immediately available for comment.

 ISS recommendations on proposed mergers or other transactions and proxy fights are widely followed and often help influence how investors cast their votes.

The ISS report said that any potential revision in deal terms would "need to narrow the gap in order to adequately compensate unaffiliated shareholders."

 (Reporting by Svea Herbst-Bayliss; Editing by Diane Craft and Jamie Freed)

 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net/))