Confluent’s platform, built on open-source technology, enables organizations to process massive streams of real-time data—from bank transactions to website clicks. The deal could be announced as early as Monday, the WSJ reported, citing unnamed sources familiar with the matter. Reuters has not independently verified the report, and neither company immediately responded to requests for comment outside normal business hours.
The discussions follow months of speculation over Confluent’s future. In October, Reuters reported that the company was exploring a potential sale and had engaged an investment bank to manage the process, drawing interest from multiple prospective buyers. Confluent currently has a market capitalization of roughly $8.09 billion, while New York-based IBM is valued at about $287.84 billion, according to LSEG-compiled data.
Investors have grown cautious following IBM’s October report of slower growth in its core cloud software business, raising questions about its ability to maintain momentum in the sector. Analysts have emphasized that stronger performance in software is critical for IBM to sustain overall growth.
Acquisitions remain central to IBM’s strategy under CEO Arvind Krishna, who has prioritized software and cloud offerings to tap into rising corporate demand, especially for generative artificial intelligence applications. Last year, IBM acquired HashiCorp in a $6.4 billion deal, expanding its cloud portfolio and positioning the company for future growth.
The interest in Confluent underscores the surging demand for data-infrastructure companies as businesses accelerate AI adoption. Similar moves include Salesforce’s $8 billion acquisition of Informatica in May, aimed at enhancing AI capabilities.
Confluent, based in Mountain View, California, saw its shares close at $23.14 on Friday, down slightly ahead of news of the potential acquisition. If completed, the deal would mark another significant step in IBM’s ongoing transformation into a software-focused, cloud-driven enterprise.