Rackspace Hosting, Inc. (RAX) hires Morgan Stanley to seek strategic options
Rackspace Hosting, Inc. (NYSE:RAX), a large cloud-computing and hosting company has hired Morgan Stanley to find strategic options. This may include partnering with a larger company.
One of the reasons why Rackspace is aggressively looking for strategic options is because Amazon and Google are cutting prices on competing prices at a rapid pace. Rackspace is also competing against Microsoft Azure and IBM. The options could be a partnership or an acquisition, but there is no timetable.
“Our board decided to hire Morgan Stanley to evaluate the inbound strategic proposals, and to explore any other alternatives which could advance Rackspace’s long-term strategy,” said Rackspace in a statement.
Rackspace was co-founded by Graham Weston in 1998. He took over as CEO in February when Lanham Napier retired.
This past March, Google cut the price of its key computing-capacity product by 32% and lowered its storage by around 68% for most users. Amazon matched Google’s prices shortly after that.