Rackspace has confirmed that it has shelved plans to sell the businesses, saying it has a better long-term future as its own company. The company has also appointed a new chief executive to lead it forward.
Rackspace had been looking for buyers, with names such as HP, IBM and CenturyLink all said to be potentially interested in the company. However, co-founder of Rackspace Graham Weston made a statement saying the company has now decided to remain in as it is.
"In this process we talked to a diverse group of interested parties and entertained different proposals. None of these proposals were deemed to have as much value as the expected value of our standalone plan,” he said.
"We concluded that the company is best positioned to drive value for shareholders, customers and Rackers through the continued execution of its strategic plan to capitalise on the growing market opportunity for managed cloud services."
However, shareholders in the company are clearly disappointed that the sale plans have been dropped, with the share price for Rackspace falling by as much as 17 percent in after-hours trading on the New York Stock Exchange.
Rackspace has also appointed Taylor Rhodes as its new chief executive. Rhodes is already a company man, currently serving as president, and he has been at the firm since 2007.
“I am confident that we are in the early days of massive transformation of the IT industry and we are well positioned to win market share and customers that value our expertise," he said.
Rackspace has numerous businesses using its mix of cloud platforms, with UK web retailer Notonthehighstreet.com telling V3 about its uses of the firm's technology earlier this year.
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