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rackspace hosting inc (RAX) Key Developments

Rackspace Hosting, Inc. - M&A Call

To discuss the evaluation of alternatives that would result in Rackspace being acquired; and to discuss the executive changes

Rackspace Announces Management Changes

Rackspace(R) announced that its board of directors has named Taylor Rhodes to be the company's chief executive officer as well as a member of the board, effective immediately. Rhodes is a Rackspace veteran who has served in a variety of leadership positions within the company since 2007, including several roles directly responsible for delivering Rackspace's renowned Fanatical Support(R) to customers globally. He retains his previous role as president and remains responsible for the company's operations worldwide. Rackspace co-founder, Graham Weston, who has served as CEO and chairman since February, now is non-executive chairman of the board.

RAX Ends To Evaluate Strategic Alternatives

Rackspace Hosting, Inc. (NYSE:RAX) announced that it has ended its evaluation of alternatives that would result in Rackspace being acquired. The company declared its commitment to remain independent. “We ran a thorough process under the direction of our board of directors, independent advisors, and a Strategic Transaction Committee of the Board,” said Graham Weston, Rackspace co-founder and chairman. “In this process we talked to a diverse group of interested parties and entertained different proposals. None of these proposals were deemed to have as much value as the expected value of our standalone plan. We concluded that the company is best positioned to drive value for shareholders, customers and Rackers through the continued execution of its strategic plan to capitalize on the growing market opportunity for managed cloud services.” Rackspace has retained Morgan Stanley and Wilson Sonsini Goodrich & Rosati to facilitae the review of alternatives.

CenturyLink Reportedly Eyeing Rackspace

CenturyLink, Inc. (NYSE:CTL) is said to be interested in Rackspace Hosting, Inc. (NYSE:RAX). People close to the matter said that CenturyLink is seeking to acquire Rackspace Hosting in order to further expand into cloud-computing services. CenturyLink has discussed the idea with Rackspace. People stated that in august 2014, Rackspace said that it was conducting an internal review of its strategic options. One person said that a deal may not be reached for the company, which had a stock-market valuation of $5.33 billion. According to the news report, Christina Weaver, a spokeswoman for Rackspace, declined to comment, while Kelly Sullivan, a representative for CenturyLink at Joele Frank Wilkinson Brimmer Katcher also declined to comment. Rackspace hired Morgan Stanley in early 2014 to seek strategic option. Rackspace’s share price closed at $37.24 on September 5, 2014.

RAX Eyes Strategic Alternatives

Rackspace Hosting, Inc. (NYSE:RAX) is in the process of exploring strategic alternatives.

 

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