The updated roadshow slides compare ELNK with its competitors. Most are Cable companies that do not have the same national footprint as ELNK. The Comcast/TimeWarner merger indicates that there may be further consolidation. IMHO ELNK brings hard assets to the table that can attract a bid.
ELNK also has a history of working with Sprint. The new owner of S wants to expand data centers in Japan, China, and maybe the USA.
I would not buy a stock on merger rumor alone. However, the new presentation indicates that ELNK is not as bad off as the current stock price implies.
I appreciate your concern for my portfolio. However, the existence of competition is not a reason to hide my money under a rock. ELNK has 90 fiber rings and they own the connections between their Data Centers. RAX is a competitor, but does not have the hard assets to support their VM services.
The ELNK power point shows that CIOs rate ELNK higher than RAX.
A combination of RAX and ELNK makes a lot of sense for both companies. RAX is strong internationally, ELNK is strong in the USA.
The ELNK fiber is already connected with a bunch of the S towers. S closed down the Nextel service at the end of last year. S paid ELNK per the Q4 report. #$%$ upgrades those same towers to Sprint Spark and their LTE build out, ELNK is in the correct position to win those contracts.