Wednesday, February 2, 2011

Buyout Binge for Cloud Computing Companies?

Article available at Seeking Alpha.

>>On Thursday, Jan 27, 2011, Verizon (VZ) purchased Terremark (TMRK) for $1.4 billion in a move to accelerate its "everything-as-a-service" cloud strategy.

Yesterday, Time Warner Cable (TWC) announced that it will acquire managed hosting and cloud services provider NaviSite (NAVI) for $230 million.

Although the acquisitions are relatively different in size and cost, two cloud related deals in less than a week by cable/telcos did not happen by chance. The question is: will this represent only the start of a series of acquisitions in this space, as Michael Nelson, an analyst at Mizuho Securities USA Inc., seems to suggest?

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