Citrix Plans Spinoff of GoToMeeting Instead of Sale
Citrix Systems Inc., the cloud-services company conducting strategic and operational reviews, is planning to spin off its GoToMeeting business rather than sell the online meeting organizer, people with knowledge of the matter said.
As a standalone business, GoTo could have a market value of about $4 billion, said one of the people, who asked not to be identified because the discussions are private. Citrix explored a sale for the unit and didn’t find a buyer, the person said. Citrix has a market value of about $12 billion.
Citrix in July reached a standstill agreement with activist shareholder Elliott Management Corp., and added Elliott’s Jesse Cohn to the board. Elliott owns about 7.5 percent of Citrix. As part of a series of announcements on July 28, Citrix said its board would perform a “comprehensive operational review” and had “initiated a review of strategic alternatives for the GoTo family of products” that included a possible sale or spinoff.
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