An Investing.com source has told the financial platform and news website that RingCentral approached 8x8 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 8x8’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, 8x8’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, 8x8 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 8x8 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.
