Report: CenturyLink Eyes Rackspace

San Antonio-based Rackspace is in the midst of discussions with telecom operator CenturyLink, where CenturyLink will buy Rackspace, according to a report from Bloomberg. The report cited "people familiar with the situation" saying that the two are in the midst of discussions for CenturyLink to acquire Rackspace Hosting, to help it expand into cloud computing services. No details on terms of a possible deal were reported. Rackspace hired an investment banker back in May, in a bid to either find a buyer or strategic investor in the business. Those bankers apparently are continuing to shop the firm around to possible buyers.