Rackspace Hosting, Inc. (NYSE:RAX) is finding it difficult to find a buyer for itself. The cloud computing company that lost massive market share to the tech biggies who came up with their own cloud platforms, it seems realized that the going would be tough as a standalone entity. Earlier this year, Rackspace Hosting, Inc. (NYSE:RAX)’s shares took a beating when it announced the departure of its CEO. Jonathan Marino reported why Rackspace Hosting, Inc. (NYSE:RAX)’s shares are ready for a rise on TheStreet, today.
“[…] In February the company announced that CEO is stepping down, which hit the stock hard and in May Rackspace informed that it has hired the investment bank Morgan Stanley, so that it can hopefully find a buyer. Rackspace shares made gains earlier this week on a report that said CenturyLink, a communications company will spend more than $5 billion to buy the cloud company […],” Marino said.
Marino mentioned that the recent iCloud leaks have brought Rackspace Hosting, Inc. (NYSE:RAX) back on the radars. He also highlighted that some people on Wall Street feel that potential bidders for Rackspace Hosting, Inc. (NYSE:RAX) are shying away as they don’t want to compete against other big tech firms.
As of June 30, 2014, Dan Loeb’s Third Point owns 7.25 million shares in Rackspace Hosting, Inc. (NYSE:RAX).
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