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To: Sr K who wrote (1207)	9/16/2014 6:46:22 PM
From: Glenn Petersen	Respond to of 1685

Rackspace Decides to Go It Alone By David Gelles DealBook New York Times September 16, 2014 6:12 pm Rackspace, a web hosting company, said in May that it was exploring strategic alternatives, including a possible sale. Potential buyers had approached the company hoping to strike a deal, and the company wanted to conduct a thorough review of its options. On Tuesday, Rackspace said the review was over and there would be no deal. “After a comprehensive review, the board decided to terminate M&A discussions,” the company said in a statement. Rackspace said that sales had improved and that its plan to grow as a standalone company was succeeding. Revenues grew by $20 million in a quarter for the first time, it said, and sales were growing faster than at any time in the past two years. The company also said it considered a share buyback program as part of the strategic review it conducted with Morgan Stanley, but opted against it for now. In addition, Rackspace named its president, Taylor Rhodes, as chief executive. “We ran a thorough process under the direction of our board of directors, independent advisers and a strategic transaction committee of the board,” Graham Weston, Rackspace’s co-founder and chairman, said in a statement. “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.” dealbook.nytimes.com