CenturyLink Said to Seek to Acquire Rackspace Hosting
September 7, 2014
Grazed from Bloomberg. Author: Alex Sherman.
CenturyLink Inc. (CTL), the Louisiana-based landline phone service provider, is seeking to acquireRackspace Hosting Inc. (RAX) to further expand into cloud-computing services, according to people familiar with the situation. CenturyLink has discussed the possibility with San Antonio-based Rackspace, which last month said it is still conducting an internal review of its strategic options, said the people, who asked not to be named talking about private information. One of the people said a deal may not be reached for the company, which now has a stock-market valuation of $5.33 billion.
The deal would add more Internet and cloud services to Monroe, Louisiana-based CenturyLink’s roster of phone and data communications packages, helping it better compete against Amazon.com Inc. (AMZN) in Web-based services. Microsoft Corp. (MSFT) and Google Inc. (GOOG) are also vying for business as companies transition from owning and operating servers to renting space in the cloud…
Christina Weaver, a spokeswoman for Rackspace, declined to comment, citing company policy. Kelly Sullivan, an outside spokeswoman for CenturyLink, also declined to comment…
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