HashiCorp Shares Spike After IBM Expresses Interest In Buying The Cloud Maker

(CTN News) – In a media report that claimed IBM was in talks to acquire HashiCorp, shares of HashiCorp soared by as much as 26% on Tuesday as a result of the report.

Developers use HashiCorp’s software to set up and manage infrastructure in cloud services provided by companies such as Amazon, Microsoft, and Google on behalf of their customers. It is also possible for organizations to pay HashiCorp for managing their security credentials.

A deal could be reached between the two sides within a few days, according to a report by The Wall Street Journal quoting unnamed sources.

During an interview with , both HashiCorp and IBM representatives stated that neither would comment on the market rumors and speculation.

Following the company’s founding in 2012, the company has gone public on Nasdaq in 2021, just two years after it was founded in 2012. During the fiscal year ending Jan. 31, the company generated a net loss of nearly $191 million, on revenues of $583 million, which constitutes a net loss of almost $191 million.

A co-founder of HashiCorp, whose family name is reflected in the company’s name, Mitchell Hashimoto, recently announced that he will be leaving the company after 13 years.

During that time period, revenue soared by almost 23%, compared with 2% for IBM in 2023 during the same time period. In a conference call with analysts held by IBM executives in January, executives from the company pointed to the challenging economic environment. On Wednesday, the company that provides hardware, software, and consulting services will release its earnings report.

In March, Cisco reported holding $9 million in HashiCorp shares, according to a filing with the Securities and Exchange Commission. It has been reported that Cisco held early talks with HashiCorp about a possible acquisition, according to a report from 2019.

Immediately after the Wall Street Journal article was published, IBM shares slid, but quickly recovered after the magazine’s publication.

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