Sign in / up

back to article Rackspace finds its $4.3bn sugar daddy

Cloud management provider Rackspace says that it will be going private in a deal that will pay shareholders $4.3bn. Investment house Apollo Global Management says it will be paying $32 per share to buy out stakeholders and run Rackspace as a private company. Rackspace stock closed yesterday (prior to the announcement) at $30. …

COMMENTS

Post your comment
House rules Send corrections
Add to 'My topics' unstar *
  1. Sampler

    "Plus, given the $4.3bn price of the deal, it'd be idiotic if Apollo did anything to undermine Rackspace's existing business or upset customers."

    Yes, and?

    0 0 Reply
  2. Anonymous Coward
    Anonymous Coward

    Value Oriented Approach

    "Apollo and its partners take a patient, value-oriented approach to their funds' investments, and value Rackspace's strategy and unique culture."

    Translation...

    "We will wait 3-4 years and take them public again to enrich ourselves."

    1 0 Reply
  3. Probie

    Wonder who will get the boot?

    Title says it all really, but becoming private you have to wonder how many of the upper management will last.

    I am waiting for the "......wants to focus on family life and ......." coming out in the news.

    1 0 Reply
  4. W. Anderson

    Trojan Horse move?

    Rumour - from fairly credible sources - has it that Apollo Global Resources has been funded by Microsoft to purchase Rackspace so that the resulting private firm can then be easily acquired by Redmond facility itself.

    Would this deal then be a hoot and coup for Microsoft, converting and then incorporating all of Openstack into Azure, for Microsoft to better Amazon AWS.

    2 0 Reply
    1. Griffo
      Reply Icon

      Re: Trojan Horse move?

      But why would Microsoft want Openstack? Every other company that tried to monetize it failed..

      And Openstack is about IaaS - yesterdays cloud. Tomorrow is all about PaaS.

      Having said that though, MS is certainly gunning for Vmware this year - giving away Windows DC to anyone who switches from vSphere to Hyper-V. Maybe this could be another weapon in their arsenal for that battle.

      0 0 Reply

POST COMMENT House rules

Not a member of The Register? Create a new account here.

Forgotten password ?

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like