Update: Reuters is reporting that the company in question could be Apollo Global, who it says are negotiating a price of more than $3.5 billion.
People familiar with the matter told the paper that the company is in advanced talks with one or more private equity firms, with a deal possibly being announced as soon as this week.
And you’re done
With a market value of $3 billion before the report, WSJ speculates a takeover valuation of $4 billion - still far below its valuation a few years ago, when it seemed like a viable competitor to Amazon Web Services.
Rackspace, which now resells AWS cloud, as well as Azure (but not Google due to low demand), has struggled to compete against the high-spending hyperscale cloud providers who have rapidly dominated the market.
While it looks like Rackspace is set to be sold, Amazon’s cloud business has seen a 58 percent revenue gain year-over-year.
Rackspace is expected to report second-quarter results on Monday.