Philbert Shih on possibility of Rackspace being taken private

  • August 5, 2016


We asked Structure Research founder and managing director Philbert Shih to provide some insight into why a company that is already public would want to go private.

‘There are obvious financial benefits for management and shareholders given that a buyout typically involves a very healthy premium on the current stock price,’ Shih says. ‘One of the primary benefits of going private is to focus on a long-term strategy and spend less time meeting quarterly expectations and complex regulatory and compliance requirements. This is a unique point in Rackspace’s history and going private will allow it to execute on some of the big decisions it has made – i.e. the shift to a managed third party cloud model – without the pressure from shareholders to hit numbers and continually drive immediate value.’

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