Courtesy of Benzinga.
Rackspace Hosting, Inc. (NYSE: RAX) is the acquisition target of landline phone company CenturyLink, Inc. (NYSE: CTL), according to a report by Bloomberg news service Monday.
Rackspace jumped more than five percent to $39.43 per share.
Rackspace, a cloud services company with a market capitalization of $5.6 billion, in mid-May said it received buyout offers and hired Morgan Stanley to evaluate the bids and to “explore other alternatives.”
A rumored CenturyLink deal was first reported in July by Brightwire.
CenturyLink, the nation's third-largest telecom with a market capitalization of $23.23 billion, has been developing a could service since at least 2011, when it paid $42.5 billion to acquire hosting company Savvis. It has since made a number of additional acquisitions in the field.
Rumors of the possible sale of Rackspace to Hewlett-Packard Company and International Business Machines Corp. have recently cooled.
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