- "Because Rackspace (RAX +18.4%) operates the largest production deployment of OpenStack and is the [#2] public cloud provider to [Amazon], it could be a strategic asset to other companies ... such as AT&T, IBM, EMC, HP, and VMware," says Blair's Jim Breen following a Bloomberg report about Rackspace's hiring of Morgan Stanley to evaluate "inbound strategic proposals."
- Worth noting: IBM, H-P, AT&T, and VMware already offer their own cloud infrastructure services, and VMware supports an OpenStack rival (its vCloud platform). Moreover, any potential buyer will likely take a close look at Rackspace's long-term ability to handle Amazon/Microsoft/Google's aggressive pricing.
- Nonetheless, the Street sees plenty of possibilities, given Rackspace's size and OpenStack software/services investments. Dell and Cisco are a couple of the other names brought up. Blair thinks Rackspace could get $54/share, given recent deal prices.
- Over 11% of the float was shorted as of April 30. Shares are up 29% since Bloomberg's report broke just before Thursday's close.
From other sites
Video at CNBC.com (Feb 18, 2015)
at CNBC.com (Dec 12, 2014)
at CNBC.com (Dec 8, 2014)
Video at CNBC.com (Dec 8, 2014)
at CNBC.com (Nov 24, 2014)
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