The reported $11 billion deal shores up IBM's AI pivot
After a few months of takeover rumors, it finally happened. Per a Wall Street Journal report, Confluent Inc (NASDAQ:CFLT) has agreed to be acquired by IBM (IBM) in an $11 billion deal, or $31 per share in cash. The move would shore up IBM's data infrastructure bonafides and signals a doubling down on the AI boom.
At last check, Confluent stock was up 28.50% to trade at $29.74. The shares are now trading at their highest level since early March, and have reclaimed their year-to-date breakeven level. The bull gap -- poised to be CFLT's biggest single-day gain since February 2024 -- also fills a a massive 32.9% post-earnings drawdown from July 31.
Options traders are responding in kind. At last check, 41,000 calls have changed hands, volume that's 29 times the average intraday amount and almost seven times the number of puts exchanged. The January 2026 25-strike call is the most popular, while new positions are being bought to open at the December 30 call.
IBM, meanwhile, is 1.4% higher to trade at $312.28, moving closer to its Nov. 12 all-time high of $324.90. The shares now boast a 42.6% year-to-date lead, with short-term support stepping up at the their 50-day moving average.