So I think people are missing some points around this deal.
Investment firms like hosting companies for two reasons:
1) They give predictable revenue, which is a great thing. Even if the profit rate isn't amazing, the revenue gives a lot of cash-flow.
2) They (often) own large infrastructure asserts (data centers), which can be depreciated and used as a tax write-off.
Not saying that they won't want to take costs out of the business too, but the motivations for a purchase like this aren't as simple as one might think.
Investment firms like hosting companies for two reasons:
1) They give predictable revenue, which is a great thing. Even if the profit rate isn't amazing, the revenue gives a lot of cash-flow.
2) They (often) own large infrastructure asserts (data centers), which can be depreciated and used as a tax write-off.
Not saying that they won't want to take costs out of the business too, but the motivations for a purchase like this aren't as simple as one might think.