There could be a major deal ahead, according to an Investing.com source
Story by James Stephen, UC Today
An Investing.com source has told the financial platform and news website that RingCentral approached 8×8 about a possible take-over.
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RingCentral is allegedly working with an investment bank to review the implications of a potential transaction.
No reports have surfaced yet as to 8×8’s position and whether they are open to a sale.
UC Today reached out to RingCentral for a comment and received the following written response: “We (RingCentral) do(es) not comment on rumours or speculation.”
At the time of writing, 8×8’s stock price is trading at around $3.92, down from $21.3 this time last year. The past month has seen the company’s share price creep up 80 cents from $3.12.
If the rumours are true, 8×8 could be reluctant to sell as their share price puts them in a weak bargaining position on paper, which they may not feel accurately reflects the company’s true value.
On the other hand, if 8×8 are not feeling optimistic about the future, this could be seen as the perfect get-out-of-jail-free card.
Recent finances may not be a reliable indicator, however, as RingCentral would not have appeared to have been in a position to make such an offer.
Earlier this month, RingCentral announced that 10% of its workforce is being laid off in order to weather the macro-economic storm pounding the technology sector at the moment.