The Wall Street Journal first reported Thursday that a deal with a private equity firm was imminent. Friday, a Reuters story said Apollo Global Management was working on a deal with the San Antonio-based company that could be worth more than $3.5 billion. Needless to say it has not happened yet.
The outfit has had a few problems expanding and had been looking to bring in private equity, regroup or restructure. There have been rumours for ages that they were ripe for the picking with a telecom provider thinking of buying them at one point.
But it seems that the company, despite having good offerings, is having a job saying anything relevant .
In May 2014, Rackspace informed the Securities and Exchange Commission that it had hired Morgan Stanley to formally explore a merger or acquisition. That September, Bloomberg News reported CenturyLink was looking to buy the company.
Speculation about potential suitors fizzled after Rackspace removed itself from the market and was unhappy with the offers it had received.