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Rackspace may take itself private: TechCrunch

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[July 02, 2014]  (Reuters) - 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. (http://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. business hours.

(Reporting by Ankush Sharma in Bangalore; Editing by Saumyadeb Chakrabarty)

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