Brad Garlinghouse resigned as the CEO of the cloud file-sharing company Hightail over sharp differences of opinion with the company's board of directors, people with direct knowledge of the matter told.
Hightail, the company formerly known as YouSendIt, had received several buyout offers this year, and while Garlinghouse wanted to sell, a majority of the board disagreed, these people said.
Hightail had been approached by at least three companies about a possible buyout, including Barracuda Networks, a data security company; NetApp, an enterprise storage company; and computing and IT giant Hewlett-Packard, as CNBC.com reported last month.
The company hired investment bank RBC Capital Markets to explore the offers and possibly shop it around to other potential acquirers.
Garlinghouse, sources familiar with the matter said, favored selling the company. He argued the cloud storage industry was fast becoming dominated by much larger and better-funded companies like Dropbox and Box, and it had become a crowded and hyper-competitive business. Hightail's board of directors disagreed, prompting Garlinghouse to respond that it was "time for a transition," according to the sources.