"3. Ripe for cost cutting A company like Blackboard is bound to have a good deal of fat that can be cut. Slashing R&D funding and whatever growth spending will

"3. Ripe for cost cutting A company like Blackboard is bound to have a good deal of fat that can be cut. Slashing R&D funding and whatever growth spending will increase the amount of cash flow that goes to investors. My guess is they will streamline the company to be more focused on its sales force than whatever developer-base they have in place at the moment." This is probably what will happen. And since blackboard already have a product that is widely disliked and considered very much out of date, this timely cost cutting will basically guarantee that they will not update their product as necessary and someone will eat their lunch. So that nice steady recurring revenue stream will disappear and the bank and the LBO fund will lose their money.