July 2 Cloud service provider Rackspace Hosting
Inc may take itself private and is in talks with a
private equity firm to fund the deal, technology blog TechCrunch
reported on Wednesday, citing a source.
The company may make an announcement by this week,
TechCrunch reported. (bit.ly/1xfbP4U)
Rackspace, which leases server space and helps corporations
store and access data in the cloud, had in May said it hired
Morgan Stanley to evaluate strategic options, including
partnerships and even a buyout.
The option of going private has come amid at least three
acquisition bids, including those from Hewlett-Packard Co
and IBM, the tech blog said, citing a source
within the company.
Rackspace has faced stiff competition from newer startups as
well as established players in the cloud computing business,
such as Amazon.com Inc and Google Inc, which
have slashed prices recently.
Rackspace, which has a market value of $4.8 billion, could
not be immediately reached for a comment outside regular U.S.
(Reporting by Ankush Sharma in Bangalore; Editing by Saumyadeb