If you’re a marketer or CX leader who relies on Medallia, you’ve likely been asking yourself: Is Medallia going out of business? Should I be worried?

The short answer: no, Medallia is not going out of business. But something significant is happening, and the implications for users, evaluators, and anyone who buys enterprise software from a PE-backed vendor are worth understanding.

Here’s what you need to know.

What happened

Thoma Bravo, the private equity (PE) firm that bought Medallia for $6.4 billion in 2021, is handing the company over to its lenders. A consortium of creditors — Blackstone, KKR, Apollo Global, and Antares Capital — will take control in a debt-for-equity swap. Thoma Bravo’s equity is gone. Its co-investors’ equity is gone. The $5.1 billion wipeout is one of the largest in PE software history.

Last week, Brad Marshall, co-CEO of Blackstone Secured Lending, addressed the situation on his firm’s first-quarter 2026 earnings call.…