BREAKING
Thoma Bravo Loses ~$5.1B on Medallia
0
B
2021 purchase price
0
B
Equity wiped out
0
M
New capital injected
From Buyout to Recapitalization
1
2021 take-private
↓
2
~$3B high-cost debt
↓
3
Rates rise, revenue falls
↓
4
Debt-for-equity swap
Why It Happened: Two Views
Valuation mistake
Industry view
●
High 2021 purchase price
●
Excessive leverage
AI disruption
Analyst view
●
Cheaper generative AI tools
●
Rising competitive pressure
0
deals to date
0
B
portfolio revenue
0
%
new revenue from AI tools
A Test Case for AI-Era Software
AI NEWS BLITZ
Thoma Bravo has wiped out roughly five point one billion dollars on Medallia.