TLDR
- Confluent is in advanced talks to be acquired by IBM for approximately $11 billion, with an announcement possible as soon as Monday
- The deal values Confluent at a premium to its Friday market capitalization of around $8 billion
- Confluent provides technology that manages real-time data streams used in AI models, serving clients in retail, technology, and financial services
- Reuters reported in October that Confluent was weighing a potential sale after drawing interest from prospective buyers
- Confluent shares closed at $23.14 on Friday before news of the IBM deal talks emerged
Confluent is nearing a sale to IBM in a deal valued at approximately $11 billion. The transaction could be announced as soon as Monday.
$IBM is buying $CFLT for $11 billionhttps://t.co/SkcZOJQXPb pic.twitter.com/wphDsYFaAF
— JaguarAnalytics (@JaguarAnalytics) December 8, 2025
The deal would value Confluent at a premium to its Friday market capitalization of around $8 billion. IBM’s market value stands at roughly $290 billion.
Sources familiar with the matter caution that talks could still fall apart. Both companies have not responded to requests for comment.
Confluent provides an open-source platform used to process massive streams of real-time data. This includes everything from bank transactions to website clicks.
The Mountain View, California-based company has become increasingly valuable as businesses race to develop AI capabilities. Its technology helps manage the data streams used in large AI models.
Confluent serves clients across retail, technology, and financial services sectors. These companies need real-time data processing capabilities for their operations.
Growing Interest in Data Infrastructure
Reuters reported in October that Confluent was weighing a potential sale. The company had tapped an investment bank to manage the process after drawing interest from prospective buyers.
The interest in Confluent reflects surging demand for data infrastructure companies. This demand is fueled by the corporate race to develop generative AI.
Salesforce agreed to acquire software maker Informatica for about $8 billion in May. That deal aimed to bolster Salesforce’s AI capabilities.
Google parent Alphabet struck a $32 billion deal for cybersecurity startup Wiz. Palo Alto Networks agreed to a $25 billion deal for CyberArk.
Technology has been one of the busiest sectors for dealmaking this year. Data infrastructure companies have attracted particular attention from larger tech firms.
IBM’s Acquisition Strategy
The potential acquisition would be IBM’s largest deal in recent memory. The company bought cloud-software provider HashiCorp last year for $6.4 billion.
That deal pushed IBM further into fast-growing cloud and AI offerings. Under CEO Arvind Krishna, IBM has sharpened its focus on software.
IBM reported slower growth in its core cloud software business in October. This raised concerns about the company’s ability to maintain momentum.
Analysts said IBM needs stronger software performance to keep overall growth on track. The Confluent acquisition could help address these concerns.
IBM reported higher revenue in the third quarter, boosted by consulting business growth. The company announced in November it would lay off thousands of employees before year’s end.
CEO Krishna recently said IBM has used AI agents to replace the work of a couple hundred HR workers. This enabled the company to hire more programmers and salespeople.
Confluent shares closed at $23.14 on Friday. The stock had been trading below its market debut levels as the company explored strategic options.
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