Rackspace Reportedly Considering Going Private

Rackspace Reportedly Considering Going Private(Ping! Zine Web Tech Magazine) – In May Rackspace announced that it was considering being acquired by another firm, but now the cloud computing company is considering going private.

According to TechCrunch, Rackspace has been contemplating taking itself off the public stock exchange and reportedly been discussing with a private equity firm about borrowing money for the deal.

Board members have been looking into “other alternatives which could advance Rackspace’s long-term strategy”; while sources in the company say “the pressures of being a public company are too much.”

Companies reportedly interested in bidding on acquiring Rackspace include IBM, Cisco, HP, Dell, EMC, and CenturyLink.

Rackspace has been struggling to compete against big cloud companies such as Amazon Web Services, Google Cloud, and Microsoft Azure for some time now. The potential of being acquired by a bigger firm could help the company to go against these big names.