Amazon in Talks For Potential Investment in Cloud Infrastructure and Services Company Rackspace

Shares of Rackspace climbed as much as 19% at one point this morning amid reports that Amazon is in talks for a potential investment in the cloud infrastructure and services company.

Amazon would acquire a minority stake in Rackspace under the possible deal, which may still require one to two months to negotiate, reported Reuters in its story breaking the news. Bloomberg News confirmed the report, noting that Amazon and Rackspace are both partners and competitors as longtime players in the cloud cloud computing market.

Based in San Antonio, Texas, Rackspace reported revenue of $2.4 billion and a net loss of $102.3 million in 2019. Net sales in Amazon’s cloud computing division, Amazon Web Services, were $35 billion over the same time frame, with operating profits of $14.5 billion.