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Wednesday, July 2, 2014

Rackspace may take itself private - TechCrunch, (NYSE: RAX)

Cloud service provider Rackspace Hosting Inc is considering taking itself private and is in talks with a private equity firm to fund the deal, technology blog TechCrunch reported on Wednesday, citing a source.Rackspace, which put itself on the block earlier this year, may make an announcement by the end of this week, TechCrunch reported. ('s shares rose as much as 8.5 percent to $36.62 on Wednesday, valuing the company at about $5.2 billion.Wells Fargo Securities analyst Gray Powell said Rackspace could seriously be considering a move to go private, a move supported by the strength of its balance sheet.

Rackspace Hosting, Inc., is the open cloud company. Shares of RAX traded higher by 6.34% or $2.14/share to $35.89. In the past year, the shares have traded as low as $26.18 and as high as $54.20. On average, 3685130 shares of RAX exchange hands on a given day and today's volume is recorded at 3417267.