Boston, MA 09/18/2014 (wallstreetpr) – Rackspace Hosting, Inc. (NYSE:RAX) will be taking a stand-alone plan for the future of the company, at least what seems visible to the eyes, as of now. The company announced that it is calling-off the strategic evaluation, which led to prospective of merger with another company or acquisition by someone else. Rackspace Hosting yesterday said that despite being approached by various potential buyers, the company did not find a suitable match because of “invaluable offers.”
The stand-alone plan of Rackspace Hosting
Rackspace Hosting, Inc. (NYSE:RAX), after declaring that none of the offers lived up to its expectations, has decided to take an individual plan for the future. Interestingly, none of the prospective buyers topped the market capitalization amount that the company is flaunting at present. This amount sums up to $5.7 billion. It is believed that the reason for dried-up potential deal was run-up in Rackspace Hosting, Inc. (NYSE:RAX)’s shares after it announced evaluating its options.
The potential suitors
Those appearing interested in the deal were International Business Machines Corp. (NYSE:IBM), CenturyLink, Inc. (NYSE:CTL) and Hewlett-Packard Company (NYSE:HPQ). However, it is opined by the industry experts that all these suitors would have struggled to convince their shareholders for the deal, given that Rackspace Hosting is going through a tough time because of acute price compression.
Surrounding trouble
Meanwhile, the company seems surrounded by troubles from all sides as it is facing stringent and intense contest from its rivals, viz. Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), IBM and Google Inc (NASDAQ:GOOGL). All of these have used the price slashing policy on cloud offerings, leaving Rackspace Hosting behind as the most expensive product.
Going on with optimism
Rackspace Hosting, Inc. (NYSE:RAX) is still ready to take on the competition in individuality as it opines to mint money from high-end cloud services. This will be in utter contrast with the DIY offerings of its competitors.
