{"id":41245,"date":"2020-08-18T09:58:56","date_gmt":"2020-08-18T09:58:56","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=4658787e9d19bb99f0653708fe520d83"},"modified":"2020-08-18T09:58:56","modified_gmt":"2020-08-18T09:58:56","slug":"aws-in-talks-to-invest-in-rackspace","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/aws-in-talks-to-invest-in-rackspace\/","title":{"rendered":"AWS ‘in talks’ to invest in Rackspace"},"content":{"rendered":"


\n Bobby Hellard<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
18 Aug, 2020<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

Amazon Web Services (AWS<\/a>) is reportedly in preliminary talks to invest in US-based cloud migration specialist Rackspace Technology.\u00a0<\/p>\n

The deal would see AWS\u00a0acquire a minority stake in Rackspace, according to\u00a0Reuters<\/em><\/a>, which cites “sources familiar with the matter”.\u00a0<\/p>\n

<\/p>\n

\nRackspace helps firms migrate their data to the likes of\u00a0AWS<\/a>, Google, Microsoft, VMware and more. The firm is headquartered in Texas but has offices stationed around the world. According to recent estimations, the company is thought to be valued between\u00a0$5 billion and $9 billion.\u00a0<\/p>\n

According to\u00a0Reuters<\/em>, the deal will have to be negotiated with Apollo Global Management, the parent company of Rackspace, but sources warned that there was no guarantee of an agreement, suggesting it could take months to hash out.\u00a0<\/p>\n

Shares in\u00a0Rackspace<\/a>\u00a0have soared\u00a015% based on the\u00a0Reuters<\/em>\u00a0report, according to\u00a0CNBC<\/a><\/em>.<\/em>\u00a0It’s claimed that trading was even briefly halted due to its volatility.\u00a0<\/p>\n

Rackspace leases server space and helps organisations store and access cloud services and data. Apollo acquired the firm in 2016, for a $4.3 billion leveraged buyout.\u00a0<\/p>\n

AWS, the market leader, has seen a boost from higher demand for cloud services as companies switch to virtual offices amid the coronavirus outbreak. Its revenues climbed almost 30% in the second quarter of 2020, hitting \u00a310.81 billion.\u00a0<\/p>\n

If a deal is made, it would be the second Apollo-owned company to secure a deal with a major tech company in 2020. Earlier in August, Google purchased a 6.6% stake in ADT for $450 million;\u00a0Apollo acquired ADT for nearly $7 billion in the same year it snapped up Rackspace. It’s thought that Google is interested in the company’s strong customer base and its security technicians as looks to drive sales of Nest devices.\u00a0 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Bobby Hellard<\/p>\n

18 Aug, 2020 <\/p>\n

Amazon Web Services (AWS) is reportedly in preliminary talks to invest in US-based cloud migration specialist Rackspace Technology.\u00a0
\nThe deal would see AWS\u00a0acquire a minority stake in Rackspace…<\/p>\n","protected":false},"author":403,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-41245","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/403"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=41245"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41245\/revisions"}],"predecessor-version":[{"id":41246,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41245\/revisions\/41246"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=41245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=41245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=41245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}