Cloud Computing: Rackspace – We’ll remain independent
September 16, 2014
Grazed from ZDNet. Author: Larry Dignan.
After months of evaluating strategic alternatives and being acquired, Rackspace said Tuesday that it will remain independent. Shares promptly plunged about 18 percent in after hours trading. The company declared "its commitment to remain independent." Rackspace also named Taylor Rhodes CEO. Co-founder Graham Weston will be chairman.
Rackspace’s plan is to focus on its managed cloud strategy, which will avoid price wars with the likes of Google and Amazon Web Services. In May, Rackspace said it was approached by multiple parties exploring an acquisition. The company’s board then evaluated its options. During that evaluation, Rackspace shares would surge based on takeover speculation. Now that speculation is over. Rackspace said:…
After a comprehensive review, the board decided to terminate M&A discussions. Based on Rackspace’s reaccelerated revenue growth and its potential trajectory for the coming year, the board concluded the company is best positioned to maximize shareholder value by executing its strategy as the #1 managed cloud company…
Read more from the source @ http://www.zdnet.com/rackspace-well-remain-independent-7000033750/