HP Exec Takes Over as Carbonite CEO; j2 Tries to Take Over Carbonite
New chief executive announced one day after Carbonite received an unsolicited, hostile $366.4 million bid from j2 Global.Carbonite, one of the most highly visible of the consumer cloud storage providers thanks to a large-scale television advertising campaign, has a new CEO. He's Mohamad Ali, former Chief Strategy Officer at Hewlett-Packard. Ali was announced on Dec. 4, one day after Boston-based Carbonite received an unsolicited, hostile $366.4 million bid ($15 per share, a 27 percent premium over Carbonite's closing price of $11.76 that day) from j2 Global. Investors obviously relished the news because Carbonite's share price zoomed up 24 percent following the announcement. There was no news Dec. 9 after that disclosure last week as the board mulls over the offer. The stock was selling for $14.25 on Dec. 9. Ali, who is taking over for longtime CEO and Chairman David Friend, contends that Carbonite—a provider of cloud-based backup and disaster-recovery services to small and medium businesses—hasn't yet reached its full potential in the market.
Because Carbonite touches hot markets involving the cloud, data security, big data storage and SMBs, Ali sees opportunity in selling its wares to thousands of these businesses globally that require automated, secure cloud storage and data analytics, but also don't have huge IT staffs.