Report: CenturyLink Wants Rackspace
Louisiana-based landline phone service provider CenturyLink is seeking to acquire Rackspace to expand into cloud-computing services, Bloomberg reports.
While the report stresses that a deal may never come to fruition, it’s not far-fetched by any means. A Rackspace acquisition would add a slew of Internet and cloud services to CenturyLink’s offerings, helping it to better compete against Amazon and other companies in Web-based services. Rackspace could also use the additional resources to compete with larger players in the ever-growing cloud-computing market.
CenturyLink is not shy about spending money on infrastructure and expertise. In 2011, it acquired Savvis and its data center and hosting business for $2.3 billion. Last year, it bought Tier 3, a respected IaaS and PaaS provider with its own data centers for an estimated $200 million.
Both companies declined to comment on this story.