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Pro Analysis

Breakingviews: Apollo wagers $4.3 bln on Amazonian capitulation

Leon Black, chairman and CEO of Apollo Management
Jonathan Alcorn | Bloomberg | Getty Images
Leon Black, chairman and CEO of Apollo Management

Apollo and Searchlight Capital are making a $4.3 billion bet on capitulation. Apollo, the private-equity firm run by Leon Black, is leading a deal to take Rackspace private, after the cloud computing firm struggled to compete against Amazon, Microsoft and other tech giants. If Rackspace's strategic shift to sell services on these platforms succeeds, Apollo will have a nice payday.