US fixed-line operator CenturyLink is reportedly looking to acquire cloud computing provider Rackspace in a bid to expand such services.
The acquisition would allow the company to be better prepared to face competition from the likes of Amazon,…
US fixed-line operator CenturyLink is reportedly looking to acquire cloud computing provider Rackspace in a bid to expand such services.
The acquisition would allow the company to be better prepared to face competition from the likes of Amazon, Microsoft and Google, according to Bloomberg citing people familiar with the matter.
However, deals talks with Rackspace, which has a market capitalisation of around US$5.3bn, might collapse on valuation, the report quoted an analyst as saying.
Last November, CenturyLink acquired another cloud computing company, Tier 3, for an undisclosed amount, while in 2011 it took over regional phone company Qwest Communications International.
According to Bloomberg, Rackspace mandated Morgan Stanley earlier this year to help it identify strategic options and expand the business after being approached by a number of potential investors interested in a partnership or acquisition.
CenturyLink provides data, voice and managed services in local, national and select international markets through its fibre optic network and multiple data centres for businesses and consumers.
A spokesperson for CenturyLink declined to comment.
